text:
(a) For purposes of this section, “plastic bulk merchandise container” means a plastic crate or shell used by a product producer, distributor, or retailer, or an agent of the product producer, distributor, or retailer as a means for the bulk transportation, storage, or carrying of retail containers of milk, eggs, or bottled beverage products.

(b) Any person or entity purchasing or transporting plastic bulk merchandise containers, who is in the business of recycling, shredding, or destruction of, or in the business of transporting for the purpose of recycling, shredding, or destruction of, plastic bulk merchandise containers, shall obtain a proof of ownership record or bill of lading from a person selling or delivering five or more plastic bulk merchandise containers that shows that the person selling or delivering the containers has lawful possession or ownership of the containers, and shall also verify the seller’s identity by a driver’s license or other government-issued photo identification. The proof of ownership record shall include all of the following information:

(1) The name, address, telephone number, and signature of the seller or the seller’s authorized representative.

(2) The name and address of the buyer or consignee if not sold.

(3) A description of the product including number of units.

(4) The date of transaction.

(c) The information required to be collected by this section shall be kept for one year from the date of purchase or delivery, whichever is later.

(d) Any person who violates the provisions of this section is guilty of a misdemeanor.

history: (History: Amended by Stats. 2012, Ch. 300, Sec. 6. (AB 1583) Effective January 1, 2013.)

path: 8. SPECIAL BUSINESS REGULATIONS > 24.5. Plastic Bulk Merchandise Containers


kind: section

code: BPC

text: This chapter shall be known as the California AI Transparency Act.

history: (History: Added by Stats. 2024, Ch. 291, Sec. 1. (SB 942) Effective January 1, 2025. Operative August 2, 2026, pursuant to Section 22757.6.)

division: 8. SPECIAL BUSINESS REGULATIONS

chapter: 25. AI Transparency Act

path: 8. SPECIAL BUSINESS REGULATIONS > 25. AI Transparency Act


text:
As used in this chapter:

(a) “Artificial intelligence” or “AI” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.

(b) “Capture device” means a device that can record photographs, audio, or video content, including, but not limited to, video and still photography cameras, mobile phones with built-in cameras or microphones, and voice recorders.

(c) (1) “Capture device manufacturer” means a person who produces a capture device for sale in the state.

(2) “Capture device manufacturer” does not include a person exclusively engaged in the assembly of a capture device.

(d) “Covered provider” means a person that creates, codes, or otherwise produces a generative artificial intelligence system that has over 1,000,000 monthly visitors or users and is publicly accessible within the geographic boundaries of the state.

(e) “Digital signature” means a cryptography-based method that identifies the user or entity that attests to the information provided in the signed section.

(f) “Generative artificial intelligence system” or “GenAI system” means an artificial intelligence that can generate derived synthetic content, including text, images, video, and audio, that emulates the structure and characteristics of the system’s training data.

(g) “GenAI hosting platform” means an internet website or application that makes available for download the source code or model weights a generative artificial intelligence system by a resident of the state, regardless of whether the terms of that use include compensation.

(h) (1) “Large online platform” means a public-facing social media platform, file-sharing platform, mass messaging platform, or stand-alone search engine that distributes content to users who did not create or collaborate in creating the content that exceeded 2,000,000 unique monthly users during the preceding 12 months.

(2) “Large online platform” does not include either of the following:

(A) A broadband internet access service, as defined in Section 3100 of the Civil Code.

(B) A telecommunications service, as defined in Section 153 of Title 47 of the United States Code.

(i) “Latent” means present but not manifest.

(j) “Manifest” means easily perceived, understood, or recognized by a natural person.

(k) “Mass messaging platform” means a direct messaging platform that allows users to distribute content to more than 100 users simultaneously.

(l) “Metadata” means structural or descriptive information about data.

(m) “Personal information” has the same meaning as defined in Section 1798.140 of the Civil Code.

(n) (1) “Personal provenance data” means provenance data that contains either of the following:

(A) Personal information.

(B) Unique device, system, or service information that is reasonably capable of being associated with a particular user.

(2) “Personal provenance data” does not include information contained within a digital signature.

(o) “Provenance data” means data that is embedded into digital content, or that is included in the digital content’s metadata, for the purpose of verifying the digital content’s authenticity, origin, or history of modification.

(p) “System provenance data” means provenance data that is not reasonably capable of being associated with a particular user and that contains either of the following:

(1) Information regarding the type of device, system, or service that was used to generate a piece of digital content.

(2) Information related to content authenticity.

history: (History: Amended by Stats. 2025, Ch. 674, Sec. 1. (AB 853) Effective January 1, 2026. Operative August 2, 2026, pursuant to Section 22757.6.)


text:
(a) A covered provider shall make available an AI detection tool at no cost to the user that meets all of the following criteria:

(1) The tool allows a user to assess whether image, video, or audio content, or content that is any combination thereof, was created or altered by the covered provider’s GenAI system.

(2) The tool outputs any system provenance data that is detected in the content.

(3) The tool does not output any personal provenance data that is detected in the content.

(4) (A) Subject to subparagraph (B), the tool is publicly accessible.

(B) A covered provider may impose reasonable limitations on access to the tool to prevent, or respond to, demonstrable risks to the security or integrity of its GenAI system.

(5) The tool allows a user to upload content or provide a uniform resource locator (URL) linking to online content.

(6) The tool supports an application programming interface that allows a user to invoke the tool without visiting the covered provider’s internet website.

(b) A covered provider shall collect user feedback related to the efficacy of the covered provider’s AI detection tool and incorporate relevant feedback into any attempt to improve the efficacy of the tool.

(c) A covered provider shall not do any of the following:

(1) (A) Except as provided in subparagraph (B), collect or retain personal information from users of the covered provider’s AI detection tool.

(B) (i) A covered provider may collect and retain the contact information of a user who submits feedback pursuant to subdivision (b) if the user opts in to being contacted by the covered provider.

(ii) User information collected pursuant to clause (i) shall be used only to evaluate and improve the efficacy of the covered provider’s AI detection tool.

(2) Retain any content submitted to the AI detection tool for longer than is necessary to comply with this section.

(3) Retain any personal provenance data from content submitted to the AI detection tool by a user.


text:
(a) A covered provider shall offer the user the option to include a manifest disclosure in image, video, or audio content, or content that is any combination thereof, created or altered by the covered provider’s GenAI system that meets all of the following criteria:

(1) The disclosure identifies content as AI-generated content.

(2) The disclosure is clear, conspicuous, appropriate for the medium of the content, and understandable to a reasonable person.

(3) The disclosure is permanent or extraordinarily difficult to remove, to the extent it is technically feasible.

(b) A covered provider shall include a latent disclosure in AI-generated image, video, or audio content, or content that is any combination thereof, created by the covered provider’s GenAI system that meets all of the following criteria:

(1) To the extent that it is technically feasible and reasonable, the disclosure conveys all of the following information, either directly or through a link to a permanent internet website:

(A) The name of the covered provider.

(B) The name and version number of the GenAI system that created or altered the content.

(C) The time and date of the content’s creation or alteration.

(D) A unique identifier.

(2) The disclosure is detectable by the covered provider’s AI detection tool.

(3) The disclosure is consistent with widely accepted industry standards.

(4) The disclosure is permanent or extraordinarily difficult to remove, to the extent it is technically feasible.

(c) (1) If a covered provider licenses its GenAI system to a third party, the covered provider shall require by contract that the licensee maintain the system’s capability to include a disclosure required by subdivision (b) in content the system creates or alters.

(2) If a covered provider knows that a third-party licensee modified a licensed GenAI system such that it is no longer capable of including a disclosure required by subdivision (b) in content the system creates or alters, the covered provider shall revoke the license within 96 hours of discovering the licensee’s action.

(3) A third-party licensee shall cease using a licensed GenAI system after the license for the system has been revoked by the covered provider pursuant to paragraph (2).


text:
(a) A large online platform shall do all of the following:

(1) Detect whether any provenance data that is compliant with widely adopted specifications adopted by an established standards-setting body is embedded into or attached to content distributed on the large online platform.

(2) (A) Provide a user interface to disclose the availability of system provenance data that reliably indicates that the content was generated or substantially altered by a GenAI system or captured by a capture device.

(B) The user interface required by this paragraph shall make clearly and conspicuously available to users information sufficient to identify the content’s authenticity, origin, or history of modification, including, but not limited to, all of the following:

(i) Whether provenance data is available.

(ii) The name of the GenAI system or capture device that created or substantially altered the content, if applicable.

(iii) Whether any digital signatures are available.

(3) Allow a user to inspect all available system provenance data that is compliant with widely adopted specifications adopted by an established standards-setting body in an easily accessible manner by any of the following means:

(A) Directly through the large online platform’s user interface pursuant to paragraph (2).

(B) Allow the user to download a version of the content with its attached system provenance data.

(C) Provide a link to the content’s system provenance data displayed on an internet website or in another application provided either by the large online platform or a third party.

(b) A large online platform shall not, to the extent technically feasible, knowingly strip any system provenance data or digital signature that is compliant with widely adopted specifications adopted by an established standards-setting body from content uploaded or distributed on the large online platform.

(c) This section shall become operative on January 1, 2027.

history: (History: Added by Stats. 2025, Ch. 674, Sec. 2. (AB 853) Effective January 1, 2026. Operative August 2, 2026, pursuant to Section 22757.6.)


text:
(a) A GenAI system hosting platform shall not knowingly make available a GenAI system that does not place disclosures pursuant to Section 22757.3.

(b) This section shall become operative on January 1, 2027.

history: (History: Added by Stats. 2025, Ch. 674, Sec. 3. (AB 853) Effective January 1, 2026. Operative August 2, 2026, pursuant to Section 22757.6.)


text:
(a) A capture device manufacturer shall, with respect to any capture device the capture device manufacturer first produced for sale in the state on or after January 1, 2028, do both of the following:

(1) Provide a user with the option to include a latent disclosure in content captured by the capture device that conveys all of the following information:

(A) The name of the capture device manufacturer.

(B) The name and version number of the capture device that created or altered the content.

(C) The time and date of the content’s creation or alteration.

(2) Embed latent disclosures in content captured by the device by default.

(b) A capture device manufacturer shall comply with this section only to the extent technically feasible and compliant with widely adopted specifications adopted by an established standards-setting body.

(c) This section shall become operative on January 1, 2028.

history: (History: Added by Stats. 2025, Ch. 674, Sec. 4. (AB 853) Effective January 1, 2026. Operative August 2, 2026, pursuant to Section 22757.6.)


text:
(a) (1) A violator of this chapter shall be liable for a civil penalty in the amount of five thousand dollars ($5,000) per violation to be collected in a civil action filed by the Attorney General, a city attorney, or a county counsel.

(2) A prevailing plaintiff in an action brought pursuant to this subdivision shall be entitled to all reasonable attorney’s costs and fees.

(b) Each day that a covered provider, large online platform, or capture device manufacturer is in violation of this chapter shall be deemed a discrete violation.

(c) For a violation by a third-party licensee of paragraph (3) of subdivision (c) of Section 22757.3, the Attorney General, a county counsel, or a city attorney may bring a civil action for both of the following:

(1) Injunctive relief.

(2) Reasonable attorney’s fees and costs.

history: (History: Amended by Stats. 2025, Ch. 674, Sec. 5. (AB 853) Effective January 1, 2026. Operative August 2, 2026, pursuant to Section 22757.6.)


text: This chapter does not apply to any product, service, internet website, or application that provides exclusively non-user-generated video game, television, streaming, movie, or interactive experiences.


text: This chapter shall become operative on August 2, 2026.

history: (History: Amended by Stats. 2025, Ch. 674, Sec. 6. (AB 853) Effective January 1, 2026.)


text: This chapter shall be known as the Transparency in Frontier Artificial Intelligence Act.

history: (History: Added by Stats. 2025, Ch. 138, Sec. 2. (SB 53) Effective January 1, 2026.)

path: 8. SPECIAL BUSINESS REGULATIONS > 25.1. Transparency in Frontier Artificial Intelligence Act


text:
For purposes of this chapter:

(a) “Affiliate” means a person controlling, controlled by, or under common control with a specified person, directly or indirectly, through one or more intermediaries.

(b) “Artificial intelligence model” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.

(c) (1) “Catastrophic risk” means a foreseeable and material risk that a frontier developer’s development, storage, use, or deployment of a frontier model will materially contribute to the death of, or serious injury to, more than 50 people or more than one billion dollars ($1,000,000,000) in damage to, or loss of, property arising from a single incident involving a frontier model doing any of the following:

(A) Providing expert-level assistance in the creation or release of a chemical, biological, radiological, or nuclear weapon.

(B) Engaging in conduct with no meaningful human oversight, intervention, or supervision that is either a cyberattack or, if the conduct had been committed by a human, would constitute the crime of murder, assault, extortion, or theft, including theft by false pretense.

(C) Evading the control of its frontier developer or user.

(2) “Catastrophic risk” does not include a foreseeable and material risk from any of the following:

(A) Information that a frontier model outputs if the information is otherwise publicly accessible in a substantially similar form from a source other than a foundation model.

(B) Lawful activity of the federal government.

(C) Harm caused by a frontier model in combination with other software if the frontier model did not materially contribute to the harm.

(d) “Critical safety incident” means any of the following:

(1) Unauthorized access to, modification of, or exfiltration of, the model weights of a frontier model that results in death or bodily injury.

(2) Harm resulting from the materialization of a catastrophic risk.

(3) Loss of control of a frontier model causing death or bodily injury.

(4) A frontier model that uses deceptive techniques against the frontier developer to subvert the controls or monitoring of its frontier developer outside of the context of an evaluation designed to elicit this behavior and in a manner that demonstrates materially increased catastrophic risk.

(e) (1) “Deploy” means to make a frontier model available to a third party for use, modification, copying, or combination with other software.

(2) “Deploy” does not include making a frontier model available to a third party for the primary purpose of developing or evaluating the frontier model.

(f) “Foundation model” means an artificial intelligence model that is all of the following:

(1) Trained on a broad data set.

(2) Designed for generality of output.

(3) Adaptable to a wide range of distinctive tasks.

(g) “Frontier AI framework” means documented technical and organizational protocols to manage, assess, and mitigate catastrophic risks.

(h) “Frontier developer” means a person who has trained, or initiated the training of, a frontier model, with respect to which the person has used, or intends to use, at least as much computing power to train the frontier model as would meet the technical specifications found in subdivision (i).

(i) (1) “Frontier model” means a foundation model that was trained using a quantity of computing power greater than 10^26 integer or floating-point operations.

(2) The quantity of computing power described in paragraph (1) shall include computing for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the developer applies to a preceding foundation model.

(j) “Large frontier developer” means a frontier developer that together with its affiliates collectively had annual gross revenues in excess of five hundred million dollars ($500,000,000) in the preceding calendar year.

(k) “Model weight” means a numerical parameter in a frontier model that is adjusted through training and that helps determine how inputs are transformed into outputs.

(l) “Property” means tangible or intangible property.

chapter: 25.1. Transparency in Frontier Artificial Intelligence Act


text:
(a) A large frontier developer shall write, implement, comply with, and clearly and conspicuously publish on its internet website a frontier AI framework that applies to the large frontier developer’s frontier models and describes how the large frontier developer approaches all of the following:

(1) Incorporating national standards, international standards, and industry-consensus best practices into its frontier AI framework.

(2) Defining and assessing thresholds used by the large frontier developer to identify and assess whether a frontier model has capabilities that could pose a catastrophic risk, which may include multiple-tiered thresholds.

(3) Applying mitigations to address the potential for catastrophic risks based on the results of assessments undertaken pursuant to paragraph (2).

(4) Reviewing assessments and adequacy of mitigations as part of the decision to deploy a frontier model or use it extensively internally.

(5) Using third parties to assess the potential for catastrophic risks and the effectiveness of mitigations of catastrophic risks.

(6) Revisiting and updating the frontier AI framework, including any criteria that trigger updates and how the large frontier developer determines when its frontier models are substantially modified enough to require disclosures pursuant to subdivision (c).

(7) Cybersecurity practices to secure unreleased model weights from unauthorized modification or transfer by internal or external parties.

(8) Identifying and responding to critical safety incidents.

(9) Instituting internal governance practices to ensure implementation of these processes.

(10) Assessing and managing catastrophic risk resulting from the internal use of its frontier models, including risks resulting from a frontier model circumventing oversight mechanisms.

(b) (1) A large frontier developer shall review and, as appropriate, update its frontier AI framework at least once per year.

(2) If a large frontier developer makes a material modification to its frontier AI framework, the large frontier developer shall clearly and conspicuously publish the modified frontier AI framework and a justification for that modification within 30 days.

(c) (1) Before, or concurrently with, deploying a new frontier model or a substantially modified version of an existing frontier model, a frontier developer shall clearly and conspicuously publish on its internet website a transparency report containing all of the following:

(A) The internet website of the frontier developer.

(B) A mechanism that enables a natural person to communicate with the frontier developer.

(C) The release date of the frontier model.

(D) The languages supported by the frontier model.

(E) The modalities of output supported by the frontier model.

(F) The intended uses of the frontier model.

(G) Any generally applicable restrictions or conditions on uses of the frontier model.

(2) Before, or concurrently with, deploying a new frontier model or a substantially modified version of an existing frontier model, a large frontier developer shall include in the transparency report required by paragraph (1) summaries of all of the following:

(A) Assessments of catastrophic risks from the frontier model conducted pursuant to the large frontier developer’s frontier AI framework.

(B) The results of those assessments.

(C) The extent to which third-party evaluators were involved.

(D) Other steps taken to fulfill the requirements of the frontier AI framework with respect to the frontier model.

(3) A frontier developer that publishes the information described in paragraph (1) or (2) as part of a larger document, including a system card or model card, shall be deemed in compliance with the applicable paragraph.

(4) A frontier developer is encouraged, but not required, to make disclosures described in this subdivision that are consistent with, or superior to, industry best practices.

(d) A large frontier developer shall transmit to the Office of Emergency Services a summary of any assessment of catastrophic risk resulting from internal use of its frontier models every three months or pursuant to another reasonable schedule specified by the large frontier developer and communicated in writing to the Office of Emergency Services with written updates, as appropriate.

(e) (1) (A) A frontier developer shall not make a materially false or misleading statement about catastrophic risk from its frontier models or its management of catastrophic risk.

(B) A large frontier developer shall not make a materially false or misleading statement about its implementation of, or compliance with, its frontier AI framework.

(2) This subdivision does not apply to a statement that was made in good faith and was reasonable under the circumstances.

(f) (1) When a frontier developer publishes documents to comply with this section, the frontier developer may make redactions to those documents that are necessary to protect the frontier developer’s trade secrets, the frontier developer’s cybersecurity, public safety, or the national security of the United States or to comply with any federal or state law.

(2) If a frontier developer redacts information in a document pursuant to this subdivision, the frontier developer shall describe the character and justification of the redaction in any published version of the document to the extent permitted by the concerns that justify redaction and shall retain the unredacted information for five years.


text:
(a) The Office of Emergency Services shall establish a mechanism to be used by a frontier developer or a member of the public to report a critical safety incident that includes all of the following:

(1) The date of the critical safety incident.

(2) The reasons the incident qualifies as a critical safety incident.

(3) A short and plain statement describing the critical safety incident.

(4) Whether the incident was associated with internal use of a frontier model.

(b) (1) The Office of Emergency Services shall establish a mechanism to be used by a large frontier developer to confidentially submit summaries of any assessments of the potential for catastrophic risk resulting from internal use of its frontier models.

(2) The Office of Emergency Services shall take all necessary precautions to limit access to any reports related to internal use of frontier models to only personnel with a specific need to know the information and to protect the reports from unauthorized access.

(c) (1) Subject to paragraph (2), a frontier developer shall report any critical safety incident pertaining to one or more of its frontier models to the Office of Emergency Services within 15 days of discovering the critical safety incident.

(2) If a frontier developer discovers that a critical safety incident poses an imminent risk of death or serious physical injury, the frontier developer shall disclose that incident within 24 hours to an authority, including any law enforcement agency or public safety agency with jurisdiction, that is appropriate based on the nature of that incident and as required by law.

(3) A frontier developer that discovers information about a critical safety incident after filing the initial report required by this subdivision may file an amended report.

(4) A frontier developer is encouraged, but not required, to report critical safety incidents pertaining to foundation models that are not frontier models.

(d) The Office of Emergency Services shall review critical safety incident reports submitted by frontier developers and may review reports submitted by members of the public.

(e) (1) The Attorney General or the Office of Emergency Services may transmit reports of critical safety incidents and reports from covered employees made pursuant to Chapter 5.1 (commencing with Section 1107) of Part 3 of Division 2 of the Labor Code to the Legislature, the Governor, the federal government, or appropriate state agencies.

(2) The Attorney General or the Office of Emergency Services shall strongly consider any risks related to trade secrets, public safety, cybersecurity of a frontier developer, or national security when transmitting reports.

(f) A report of a critical safety incident submitted to the Office of Emergency Services pursuant to this section, a report of assessments of catastrophic risk from internal use pursuant to Section 22757.12, and a covered employee report made pursuant to Chapter 5.1 (commencing with Section 1107) of Part 3 of Division 2 of the Labor Code are exempt from the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(g) (1) Beginning January 1, 2027, and annually thereafter, the Office of Emergency Services shall produce a report with anonymized and aggregated information about critical safety incidents that have been reviewed by the Office of Emergency Services since the preceding report.

(2) The Office of Emergency Services shall not include information in a report pursuant to this subdivision that would compromise the trade secrets or cybersecurity of a frontier developer, public safety, or the national security of the United States or that would be prohibited by any federal or state law.

(3) The Office of Emergency Services shall transmit a report pursuant to this subdivision to the Legislature, pursuant to Section 9795, and to the Governor.

(h) The Office of Emergency Services may adopt regulations designating one or more federal laws, regulations, or guidance documents that meet all of the following conditions for the purposes of subdivision (i):

(1) (A) The law, regulation, or guidance document imposes or states standards or requirements for critical safety incident reporting that are substantially equivalent to, or stricter than, those required by this section.

(B) The law, regulation, or guidance document described in subparagraph (A) does not need to require critical safety incident reporting to the State of California.

(2) The law, regulation, or guidance document is intended to assess, detect, or mitigate the catastrophic risk.

(i) (1) A frontier developer that intends to comply with this section by complying with the requirements of, or meeting the standards stated by, a federal law, regulation, or guidance document designated pursuant to subdivision (h) shall declare its intent to do so to the Office of Emergency Services.

(2) After a frontier developer has declared its intent pursuant to paragraph (1), both of the following apply:

(A) The frontier developer shall be deemed in compliance with this section to the extent that the frontier developer meets the standards of, or complies with the requirements imposed or stated by, the designated federal law, regulation, or guidance document until the frontier developer declares the revocation of that intent to the Office of Emergency Services or the Office of Emergency Services revokes a relevant regulation pursuant to subdivision (j).

(B) The failure by a frontier developer to meet the standards of, or comply with the requirements stated by, the federal law, regulation, or guidance document designated pursuant to subdivision (h) shall constitute a violation of this chapter.

(j) The Office of Emergency Services shall revoke a regulation adopted under subdivision (h) if the requirements of subdivision (h) are no longer met.


text:
(a) On or before January 1, 2027, and annually thereafter, the Department of Technology shall assess recent evidence and developments relevant to the purposes of this chapter and shall make recommendations about whether and how to update any of the following definitions for the purposes of this chapter to ensure that they accurately reflect technological developments, scientific literature, and widely accepted national and international standards:

(1) “Frontier model” so that it applies to foundation models at the frontier of artificial intelligence development.

(2) “Frontier developer” so that it applies to developers of frontier models who are themselves at the frontier of artificial intelligence development.

(3) “Large frontier developer” so that it applies to well-resourced frontier developers.

(b) In making recommendations pursuant to this section, the Department of Technology shall take into account all of the following:

(1) Similar thresholds used in international standards or federal law, guidance, or regulations for the management of catastrophic risk and shall align with a definition adopted in a federal law or regulation to the extent that it is consistent with the purposes of this chapter.

(2) Input from stakeholders, including academics, industry, the open-source community, and governmental entities.

(3) The extent to which a person will be able to determine, before beginning to train or deploy a foundation model, whether that person will be subject to the definition as a frontier developer or as a large frontier developer with an aim toward allowing earlier determinations if possible.

(4) The complexity of determining whether a person or foundation model is covered, with an aim toward allowing simpler determinations if possible.

(5) The external verifiability of determining whether a person or foundation model is covered, with an aim toward definitions that are verifiable by parties other than the frontier developer.

(c) Upon developing recommendations pursuant to this section, the Department of Technology shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, with those recommendations.

(d) (1) Beginning January 1, 2027, and annually thereafter, the Attorney General shall produce a report with anonymized and aggregated information about reports from covered employees made pursuant to Chapter 5.1 (commencing with Section 1107) of Part 3 of Division 2 of the Labor Code that have been reviewed by the Attorney General since the preceding report.

(2) The Attorney General shall not include information in a report pursuant to this subdivision that would compromise the trade secrets or cybersecurity of a frontier developer, confidentiality of a covered employee, public safety, or the national security of the United States or that would be prohibited by any federal or state law.

(3) The Attorney General shall transmit a report pursuant to this subdivision to the Legislature, pursuant to Section 9795 of the Government Code, and to the Governor.


text:
(a) A large frontier developer that fails to publish or transmit a compliant document required to be published or transmitted under this chapter, makes a statement in violation of subdivision (e) of Section 22757.12, fails to report an incident as required by Section 22757.13, or fails to comply with its own frontier AI framework shall be subject to a civil penalty in an amount dependent upon the severity of the violation that does not exceed one million dollars ($1,000,000) per violation.

(b) A civil penalty described in this section shall be recovered in a civil action brought only by the Attorney General.


text: The loss of value of equity does not count as damage to or loss of property for the purposes of this chapter.


text:
(a) It is unlawful to sell within this state any cordless telephone manufactured after January 1, 1992, that does not provide increased protection from unintentional line seizure and dialing, and protection from unintentional ringing.

(b) For the purposes of this section, a cordless telephone is a two-way low power communication system consisting of the following two parts connected by a radio link:

(1) A “base” unit connected to the public switched telephone network.

(2) A “handset” or “remote” unit.

(c) For the purposes of this section, a cordless telephone has increased protection from unintentional line seizure and dialing, and protection from unintentional ringing, if it does either of the following:

(1) Provides a randomly selected preset digital security code from among at least 256 possible codes and a means for the user to manually enter a new security code in the event of interference.

(2) Provides a means for automatically selecting a different code from among at least 256 possible discrete codes.

(d) This section does not apply to any cordless telephone manufactured prior to January 1, 1992, whether, after the operative date of this section, it is inspected, repaired, or refurbished and returned to the original user, provided to another user in exchange for a unit needing repair, or resold.

history: (History: Added by Stats. 1990, Ch. 340, Sec. 2.)

chapter: 26. Telephone Equipment

path: 8. SPECIAL BUSINESS REGULATIONS > 26. Telephone Equipment


text:
(a) For purposes of this section, the following terms have the following meanings:

(1) (A) “Smartphone” means a cellular radio telephone or other mobile voice communications handset device that includes all of the following features:

(i) Utilizes a mobile operating system.

(ii) Possesses the capability to utilize mobile software applications, access and browse the Internet, utilize text messaging, utilize digital voice service, and send and receive email.

(iii) Has wireless network connectivity.

(iv) Is capable of operating on a long-term evolution network or successor wireless data network communication standards.

(B) A “smartphone” does not include a radio cellular telephone commonly referred to as a “feature” or “messaging” telephone, a laptop, a tablet device, or a device that only has electronic reading capability.

(2) “Essential features” of a smartphone are the ability to use the smartphone for voice communications, text messaging, and the ability to browse the Internet, including the ability to access and use mobile software applications. “Essential features” do not include any functionality needed for the operation of the technological solution, nor does it include the ability of the smartphone to access emergency services by a voice call or text to the numerals “911,” the ability of a smartphone to receive wireless emergency alerts and warnings, or the ability to call an emergency number predesignated by the owner.

(3) “Hard reset” means the restoration of a smartphone to the state it was in when it left the factory through processes commonly termed a factory reset or master reset.

(4) “Sold in California,” or any variation thereof, means that the smartphone is sold at retail from a location within the state, or the smartphone is sold and shipped to an end-use consumer at an address within the state. “Sold in California” does not include a smartphone that is resold in the state on the secondhand market or that is consigned and held as collateral on a loan.

(b) (1) Except as provided in paragraph (3), any smartphone that is manufactured on or after July 1, 2015, and sold in California after that date, shall include a technological solution at the time of sale, to be provided by the manufacturer or operating system provider, that, once initiated and successfully communicated to the smartphone, can render the essential features of the smartphone inoperable to an unauthorized user when the smartphone is not in the possession of an authorized user. The smartphone shall, during the initial device setup process, prompt an authorized user to enable the technological solution. The technological solution shall be reversible, so that if an authorized user obtains possession of the smartphone after the essential features of the smartphone have been rendered inoperable, the operation of those essential features can be restored by an authorized user. A technological solution may consist of software, hardware, or a combination of both software and hardware, and when enabled, shall be able to withstand a hard reset or operating system downgrade and shall prevent reactivation of the smartphone on a wireless network except by an authorized user.

(2) An authorized user of a smartphone may affirmatively elect to disable or opt-out of enabling the technological solution at any time. However, the physical acts necessary to disable or opt-out of enabling the technological solution may only be performed by the authorized user or a person specifically selected by the authorized user to disable or opt-out of enabling the technological solution.

(3) Any smartphone model that was first introduced prior to January 1, 2015, that cannot reasonably be reengineered to support the manufacturer’s or operating system provider’s technological solution, including if the hardware or software cannot support a retroactive update, is not subject to the requirements of this section.

(c) The knowing retail sale of a smartphone in California in violation of subdivision (b) may be subject to a civil penalty of not less than five hundred dollars ($500), nor more than two thousand five hundred dollars ($2,500), per smartphone sold in California in violation of this section. A suit to enforce this subdivision may only be brought by the Attorney General, a district attorney, or a city attorney. A failure of the technological solution due to hacking or other third-party circumvention may be considered a violation for purposes of this subdivision, only if, at the time of sale, the seller had received notification from the manufacturer or operating system provider that the vulnerability cannot be remedied by a software patch or other solution. There is no private right of action to enforce this subdivision.

(d) The retail sale in California of a smartphone shall not result in any civil liability to the seller and its employees and agents from that retail sale alone if the liability results from or is caused by failure of a technological solution required pursuant to this section, including any hacking or other third-party circumvention of the technological solution, unless at the time of sale the seller had received notification from the manufacturer or operating system provider that the vulnerability cannot be remedied by a software patch or other solution. Nothing in this subdivision precludes a suit for civil damages on any other basis outside of the retail sale transaction, including, but not limited to, a claim of false advertising.

(e) Any request by a government agency to interrupt communications service utilizing a technological solution required by this section is subject to Section 7908 of the Public Utilities Code.

(f) Nothing in this section prohibits a network operator, device manufacturer, or operating system provider from offering a technological solution or other service in addition to the technological solution required to be provided by the device manufacturer or operating system provider pursuant subdivision (b).

(g) Nothing in this section requires a technological solution that is incompatible with, or renders it impossible to comply with, obligations under state and federal law and regulation related to any of the following:

(1) The provision of emergency services through the 911 system, including text to 911, bounce-back messages, and location accuracy requirements.

(2) Participation in the wireless emergency alert system.

(3) Participation in state and local emergency alert and public safety warning systems.

(h) The Legislature finds and declares that the enactment of a uniform policy to deter thefts of smartphones and to protect the privacy of smartphone users if their smartphones are involuntarily acquired by others is a matter of statewide concern and no city, county, or city and county shall impose requirements on manufacturers, operating system providers, wireless carriers, or retailers relating to technological solutions for smartphones.

history: (History: Added by Stats. 2014, Ch. 275, Sec. 2. (SB 962) Effective January 1, 2015.)


text:
(a) “Cable television operator” means the person or entity providing cable television services through the cable television system.

(b) “Video provider” means any person, company, or service which provides one or more channels of video programming to a residence, including a home, condominium, apartment, or mobilehome, where some fee is paid, whether directly or as included in dues or rental charges, for that service, whether or not public rights-of-way are utilized in the delivery of the video programming. A “video provider” shall include, but not be limited to, providers of cable television, master antenna television, satellite master antenna television, direct broadcast satellite, multipoint distribution service, and other providers of video programming, whatever their technology.

(c) No cable television operator or video provider shall charge for a service, for which a separate and distinct charge was made, that is provided to a consumer on an individual basis at no charge unless the customer affirmatively and specifically elects to continue that service for the applicable charge. This election may be made by the consumer at any time prior to the imposition of the applicable charge, including at any time prior to first receiving the service for no charge. This section shall not apply to the addition of any service to a package, tier or service offering or any restructuring or retiering of any package, tier or service offering, provided the consumer is receiving the package, tier or servicing offering at the time of the addition, restructuring or retiering.

history: (History: Added by Stats. 1992, Ch. 361, Sec. 1. Effective January 1, 1993.)

chapter: 27. Cable Television

path: 8. SPECIAL BUSINESS REGULATIONS > 27. Cable Television


text:
For purposes of this chapter, the following definitions apply:

(a) “Video programming” has the same meaning as defined in Section 613(h) of Title 47 of the United States Code.

(b) (1) “Video streaming service” means an entity that makes available directly to the consumer, through a distribution method that uses internet protocol, either of the following:

(A) Video programming.

(B) Video content the entity makes available for users to view.

(2) “Video streaming service” does not include a television broadcast station, cable operator, or other multichannel video programing distributor, or an entity that serves video programming or video content without commercial advertisements.

history: (History: Added by Stats. 2025, Ch. 336, Sec. 1. (SB 576) Effective January 1, 2026.)

chapter: 27.3. Video Streaming Services

path: 8. SPECIAL BUSINESS REGULATIONS > 27.3. Video Streaming Services


text: On and after July 1, 2026, a video streaming service that serves consumers residing in the state shall not transmit the audio of commercial advertisements louder than the video content the advertisements accompany, consistent with the regulations adopted by the Federal Communications Commission pursuant to the Commercial Advertisement Loudness Mitigation (CALM) Act (Public Law 111-311) for television broadcast stations, cable operators, and other multichannel video programming distributors.


text: This chapter does not create a private right of action.


text:
(a) A commercial mail receiving agency shall not accept a Postal Service Form 1583 until positive identification has been established for the person filing the form. For purposes of this section, positive identification means any one of the following:

(1) Driver’s license.

(2) State identification card.

(3) Armed forces identification card.

(4) Employment identification card which contains the bearer’s signature and photograph.

(5) Any similar documentation which provides the agency with reasonable assurance of the identity of the filer.

(b) A commercial mail receiving agency shall maintain a copy of any Postal Service Form 1583 filed with the United States Postal Service. Upon the request of any law enforcement agency conducting an investigation, the commercial mail receiving agency shall make available to that law enforcement agency for purposes of that investigation and copying, its copy of the Postal Service Form 1583.

(c) A violation of this chapter is an infraction punishable by a fine of not less than one hundred dollars ($100) for the first offense, and a fine of not less than five hundred dollars ($500) for each subsequent offense.

history: (History: Added by Stats. 1993, Ch. 636, Sec. 1. Effective January 1, 1994.)

chapter: 27.5. Commercial Mail Receiving Agency

path: 8. SPECIAL BUSINESS REGULATIONS > 27.5. Commercial Mail Receiving Agency


text: The Legislature finds and declares that the retail distribution, sales, and rental of agricultural, construction, utility, industrial, mining, outdoor power, forestry, and lawn and garden equipment, utilizing independent dealers operating under contract with the supplier vitally affects the general economy of the state, the public interest, and the public welfare. Therefore, the Legislature has determined that it is necessary to regulate the business relations between the dealers and suppliers as described in this chapter.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 2. Effective October 7, 2005.)

path: 8. SPECIAL BUSINESS REGULATIONS > 28. Fair Practices of Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act


text:
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) “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) “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) “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) “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) “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) “Dealership” means the retail sale business engaged in by a dealer under a dealer contract.

(i) “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) (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) “Family member” means a spouse, parent, sibling, child, son-in-law, daughter-in-law, and lineal descendant, including those by adoption.

(l) “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) “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) “Inventory” means equipment, repair parts, data-processing hardware or software, and specialized service or repair parts.

(o) “Major shareholder” means a shareholder with 51-percent or greater interest in a dealership.

(p) “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) “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) “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) “Repair parts” means all parts and products related to the service or repair of equipment, including superseded parts.

(t) “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) “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) “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) “Terminate” means to terminate, cancel, fail to renew, or materially change the competitive circumstances of a dealer contract.

history: (History: Amended by Stats. 2006, Ch. 538, Sec. 32. Effective January 1, 2007.)

chapter: 28. Fair Practices of Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act


text:
It shall be a violation of this chapter for a supplier to take any of the following actions:

(a) To coerce or compel any dealer to order or accept delivery of any equipment or parts that the dealer has not voluntarily ordered, except as required by any applicable law or unless the equipment or repair parts are safety features required by the supplier.

(b) To coerce or compel any dealer to enter into any contract, whether written or oral, or amend an existing dealer contract with the supplier, unless the contract or amendment is imposed on all other similarly situated dealers in the state.

(c) To refuse to deliver to any dealer in reasonable quantities and within a reasonable time after receipt of the dealer’s order, equipment covered by the dealer contract specifically advertised or represented by the supplier to be available for immediate delivery or on an agreed-upon delivery date. The failure to deliver the equipment shall not be considered a violation of this act if the failure is due to reasonable restrictions on extension of credit by the supplier to the dealer, any breach of or default under the contract by the dealer, an act of God, work stoppage or delay due to a strike or labor difficulty, a bona fide shortage of materials, freight embargo, or a business decision by the supplier to limit the production volume of the equipment and written notice is provided to the dealer within 30 days of that decision or other cause over which the supplier has no control.

(d) To terminate, cancel, or fail to renew a dealer contract or materially change the competitive circumstances of the dealer contract without good cause.

(e) To require as a condition of renewal or extension of a dealer contract that the dealer complete substantial renovation of the dealer’s place of business or acquire new or additional space to serve as the dealer’s place of business, unless the supplier provides at least one year’s written notice of the condition that states all grounds supporting the condition. The supplier shall provide not less than two years for the dealer to complete the renovation or acquisition after the one year’s notice period has expired.

(f) To discriminate, directly or indirectly, in prices charged between different dealers with respect to purchases of equipment or repair parts of like grade and quality and identical brand, where the effect of that discrimination may be to substantially lessen competition, tend to create a monopoly in any line of commerce, or injure, destroy, or prevent competition with any dealer who either grants or knowingly receives the benefit of the discrimination. However, different prices may be charged if (1) the differences are due to differences in the cost of manufacture, sale or delivery of the equipment or repair parts, or (2) the supplier can show that its lower price was made in good faith to meet an equally low price of a competitor and the lower price was made available to other dealers, or (3) the differences are related to the volume of equipment purchased by dealers if the supplier offers all other similarly situated dealers the same volume program.

(g) To prevent, by contract or otherwise, any dealer from changing its capital structure, ownership, or the means by which the dealership is financed, provided the dealer at all times meets any reasonable capital standards imposed by the supplier or as otherwise agreed to between the dealer and the supplier and imposed on similarly situated dealers, and provided this change by the dealer does not result in a change of the controlling interest in the executive management or board of directors, or any guarantors of the dealership.

(h) To prevent, by contract or otherwise, any dealer or any officer, member, partner, or stockholder of any dealer from selling or transferring any part of the interest of any of them to any other party or parties. However, no dealer, officer, partner, member, or stockholder shall have the right to sell, transfer, or assign the dealership or power of management or control of the dealership without the written consent of the supplier.

(i) To require a dealer to assent to a release, assignment, novation, waiver, or estoppel that would relieve any person from liability imposed by this section.

(j) To require any dealer to purchase goods or services as a condition of the sale by the supplier to the dealer of any equipment, repair parts, or other goods or services; except that nothing in this subdivision shall prohibit a supplier from requiring the dealer to purchase repair parts, special tools, and training reasonably necessary to maintain the safe operation or quality of operation in the field of any equipment offered for sale by the dealer.

(k) To coerce any dealer into a refusal to purchase equipment manufactured by another supplier.

(l) To penalize any dealer that purchases equipment or repair parts for sale manufactured by another supplier.

(m) To discriminate, directly or indirectly, between dealers of the same product line in filling an order placed by a dealer for retail sale or lease of equipment under a dealer contract.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 4. Effective October 7, 2005.)


text: Nothing in this chapter permits the offering or enforcement of a provision in a dealer contract that requires a dealer to comply with a minimum price-fixing provision or any other provision to limit competition. For purposes of this chapter, a provision in a dealer contract providing for exclusive territorial rights and its corresponding provisions shall not be prohibited.

history: (History: Added by Stats. 2005, Ch. 712, Sec. 5. Effective October 7, 2005.)


text:
(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) 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.

history: (History: Amended by Stats. 2009, Ch. 500, Sec. 8. (AB 1059) Effective January 1, 2010.)


text:
(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) If a supplier has contractual authority to approve or deny a request for a sale or transfer of a dealer’s business or an equity ownership interest in the business, the supplier shall approve or deny the request within 60 days after receiving a written request from the dealer. If the supplier has neither approved nor denied the request within the 60-day period, the request shall be deemed approved. The dealer’s request shall include reasonable financial information, personal background, character references, and work history information for the acquiring persons. If a supplier denies a request made pursuant to this section, the supplier shall provide the dealer with a written notice of that denial that states the reasons for the denial. A supplier may only deny a request based on the failure of the proposed transferees to meet the reasonable requirements consistently imposed by the supplier in determining approval of transfers or approvals of new dealers.

(c) If a dealer dies and the supplier has contractual authority to approve or deny a request for the sale or transfer of the dealer’s business or an equity ownership interest in the business, the dealer’s estate or other person with authority to transfer the dealer’s assets shall have 180 days to submit to the supplier a written request for a sale or transfer of that business or equity ownership interest. If the request is timely submitted, the supplier shall approve or deny that request in accordance with subdivision (b). Notwithstanding any contrary provision of this chapter, any attempt by a supplier to terminate the dealer contract as a result of the death of a dealer shall be delayed until there has been compliance with the terms of this section or the 180-day period has expired, as applicable.

(d) Notwithstanding subdivision (c), if a supplier and dealer executed an agreement concerning succession rights prior to the dealer’s death, and if the 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.

(e) A supplier may withhold consent to a transfer of an interest in a dealership if, with due regard to regional market conditions and distribution economies, the dealer’s area of responsibility or trade area does not afford sufficient sales potential to reasonably support a dealer. In any dispute between a supplier and dealer under this subdivision, the supplier shall bear the burden of proving that the dealer’s area of responsibility or trade area does not afford sufficient sales potential to reasonably support a dealer.

history: (History: Added by Stats. 2005, Ch. 712, Sec. 7. Effective October 7, 2005.)


text:
(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) 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.

history: (History: Added by Stats. 2005, Ch. 712, Sec. 8. Effective October 7, 2005.)


text:
(a) If a dealer submits a warranty claim to a supplier while the dealer contract is in effect or within 60 days after the termination of the dealer contract, and if the claim is for work performed before the termination or expiration of the dealer contract, the supplier shall approve or reject that warranty claim by written notice to the dealer within 45 days after the supplier’s receipt of the warranty claim. If the supplier approves the warranty claim, the supplier shall pay the dealer or credit the dealer’s account the entire amount owed with respect to the claim within 30 days of approval. If the supplier rejects the warranty claim, the supplier shall give the dealer written or electronic notice of the grounds for rejection. These reasons must be consistent with the supplier’s reason for rejecting the warranty claims of other dealers, both in terms and manner of enforcement. If the supplier does not provide the dealer with grounds for rejection, the claim shall be deemed to be approved.

(b) Any claim that is not approved by the supplier based upon the dealer’s failure to properly follow the procedural or technical requirements for submission of the warranty claim may be resubmitted in proper form by the dealer within 30 days of receipt of the supplier’s rejection notification.

(c) Warranty work performed by the dealer shall be compensated in accordance with the reasonable and customary amount of time required to complete the work, expressed in hours and fractions multiplied by the dealer’s established customer hourly retail labor rate, which shall have previously been made known to the supplier. Parts used in warranty repair work shall be reimbursed at the current net parts cost plus 15 percent and the cost of freight. For purposes of this subdivision, “established customer hourly retail labor rate” means the lowest posted customer in-shop retail labor rate for the six months preceding the claim.

(d) For the purpose of this act, any repair work or installation of replacement parts with respect to the dealer’s equipment in inventory or equipment of the dealer’s customers at the request of the supplier, including work performed pursuant to a product improvement program, shall be deemed to create a warranty claim for which the dealer shall be paid pursuant to this section.

(e) A supplier may audit warranty claims submitted by its dealers for a period of up to one year. If the audit reveals an amount was misrepresented by the supplier, the supplier may charge its dealers the amount shown by the audit to be misrepresented. If a warranty claim is misrepresented, then subsequent warranty claims submitted within the two-year period ending with the date of the audit may be audited. However, a supplier shall not audit a warranty claim more than once.

(f) The requirements of subdivisions (a), (b), and (c) apply to all warranty claims submitted by a dealer to a supplier where the dealer has complied with the supplier’s reasonable written policies and procedures for warranty reimbursement. A supplier’s warranty reimbursement policies and procedures shall be deemed unreasonable to the extent they conflict with any of the provisions of this section.

(g) A dealer may choose to accept alternate reimbursement terms and conditions instead of the requirements of subdivisions (a), (b), and (c) if there is a written dealer contract between the supplier and the dealer that requires the supplier to compensate the dealer for warranty labor costs either as: (1) a discount in the pricing of the equipment to the dealer; or (2) a lump-sum payment to the dealer that is made to the dealer within 90 days of the sale of the supplier’s new equipment. If the requirements of this subdivision are met and alternate terms and conditions are in place, subdivisions (a), (b), and (c) do not apply and the alternate terms and conditions are enforceable. Nothing contained in this subdivision shall be deemed to affect the supplier’s obligation to reimburse the dealer for parts in accordance with subdivision (c).

(h) If a supplier fails or refuses to pay for warranty work covered under this section within 30 days of the supplier’s approval of the dealer’s claim, the supplier shall be liable for 110 percent of the total claim, plus interest at the statutory rate from the payment due date until the date of payment, and actual costs for any court or arbitration proceeding, including costs for attorney’s fees and arbitrators.

history: (History: Added by Stats. 2005, Ch. 712, Sec. 9. Effective October 7, 2005.)


text:
Every supplier shall provide to its dealers, on an annual basis, an opportunity to return a portion of their surplus parts inventory for credit. The surplus procedure shall be administered as follows:

(a) The supplier may notify its dealers of a time period, of at least 90 days’ duration, during which time dealers may submit their surplus parts list and return their surplus parts to the supplier. A supplier may choose to designate a different period of time for each dealer to return surplus parts.

(b) If a supplier has not notified a dealer of a specific time period for returning surplus parts within the preceding 12 months, then it shall authorize and allow the dealer’s surplus parts return request within 60 days after receipt of that request from the dealer.

(c) Pursuant to the provisions of this section, a supplier shall allow surplus parts return authority on a dollar value of parts equal to 10 percent of the total dollar value of parts purchased by the dealer from the supplier during the 12-month period immediately preceding the notification to the dealer by the supplier of the surplus parts return program, or the month the dealer’s return request is made, whichever is applicable.

(d) Returned parts shall be in new and unused condition and shall have been purchased by the dealer from the supplier to whom they are returned. Obsolete and superseded parts may be returned if listed in the supplier’s current returnable parts list or if those parts have not been the subject of a supplier’s return program at the date of the notification to the dealer by the supplier of the surplus parts return program, or the date of the dealer’s parts return request, whichever is applicable.

(e) The minimum lawful credit to be allowed for returned parts shall be 95 percent of the current net parts cost, as listed in the supplier’s current returnable parts list at the date of the notification to the dealer by the supplier of the surplus parts return program, or the date of the dealer’s parts return request, whichever is applicable.

(f) The annual parts return provided for in this section may be waived by a dealer.

(g) If an outstanding balance is owed to the supplier, the supplier may credit the dealer’s account within 30 days after the supplier’s receipt of the dealer’s returned parts. If no balance exists, the supplier shall pay the dealer within 30 days after the supplier’s receipt of the dealer’s returned parts. If a supplier refuses to credit the dealer’s account or pay the dealer for returned parts covered by this section within 30 days of the supplier’s receipt of returned parts, the supplier shall be liable for 110 percent of the total current net parts cost, plus interest at the statutory rate from the payment due date until the date of payment, and actual costs for any court or arbitration proceeding, including costs for attorney’s fees and arbitrators.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 10. Effective October 7, 2005.)


text:
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) 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.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 11. Effective October 7, 2005.)


text:
(a) A dealer, as defined in subdivision (f) 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.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 12. Effective October 7, 2005.)


text: Except as otherwise provided in this act, the notice of lien shall remain in effect, and no new notice of claim of lien shall be required in order to maintain the lien, as long as the dealer remains unpaid for the amounts secured by the lien.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 13. Effective October 7, 2005.)


text: The lien created by this act shall be perfected and shall be effective upon the filing of a notice claim of lien with the Secretary of State.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 14. Effective October 7, 2005.)


text:
The notice of claim of lien shall contain all of the following information:

(a) The name and address of the lien claimant.

(b) The name and address of the lien debtor.

(c) The location of the property to which the equipment was returned.

(d) A statement that the payment of reasonable or agreed charges is more than 90 days overdue.

(e) The amount of the reasonable or agreed charges that are overdue.

(f) A statement, signed under penalty of perjury, that includes all of the following:

(1) That the lien claimant sent to the lien debtor the notice required pursuant to subdivision (a) of Section 22906.

(2) That more than 10 days have elapsed since the notice was received by the lien debtor.

(3) That the lien debtor has not complied with the requirements of subdivision (a) of Section 22906.

(g) A statement that the lien claimant has an equipment repurchase lien pursuant to Section 22906.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 15. Effective October 7, 2005.)


text: The notice of claim of lien shall be signed by the lien claimant or by a person authorized by the claimant.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 16. Effective October 7, 2005.)


text:
The notice of a claim of lien shall be filed on a form prescribed by the Secretary of State pursuant to Section 9502 of the Commercial Code. The standard form shall be completed in its entirety except as follows:

(a) The lien claimant may be identified either as a lien claimant or as a secured party.

(b) The form shall be signed by the lien claimant and need not be signed by the lien debtor.

(c) The description of the collateral shall be the information specified in subdivisions (c), (d), (e), and (g) of Section 22909.

(d) Attached to the form shall be a separately signed statement containing the information specified in subdivision (f) of Section 22909.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 17. Effective October 7, 2005.)


text: The notice of claim of lien shall be filed, indexed, and marked in the office of the Secretary of State in the same manner as a financing statement is filed, indexed, and marked pursuant to Sections 9516 and 9519 of the Commercial Code.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 1.2. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text: The lien claimant shall provide written notice of the claim of lien to the lien debtor within 10 days of the date of filing the lien with the Secretary of State.

history: (History: Amended by Stats. 2005, Ch. 712, Sec. 18. Effective October 7, 2005.)


text: For the purpose of the Secretary of State’s index pursuant to Sections 9516 and 9519 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9523 or 9528 of the Commercial Code, the Secretary of State shall identify a notice pursuant to this article as a financing statement.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 1.3. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text:
The lien created pursuant to this act shall be treated according to the following:

(a) Have priority in accordance with the time the notice of claim of lien is filed with the Secretary of State.

(b) Have the same priority as a security interest perfected by the filing of a financing statement as of the date of notice of claim of lien was filed with the Secretary of State.

(c) Not have priority over labor claims for wages and salaries for personal services that are provided by any employee to any lien debtor in connection with the equipment supplied, the proceeds of which are subject to the lien.

history: (History: Amended by Stats. 2006, Ch. 538, Sec. 33. Effective January 1, 2007.)


text: A member of the public may obtain a certificate from the Secretary of State identifying whether there is a lien on file and any notice of claim of lien naming a particular debtor, and if so, giving the date and time of the filing of each notice, and the names and addresses of each lienholder in the certificate. The fee for the certificate is the same as the fee for the certificate issued pursuant to Section 9523 of the Commercial Code.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 1.4. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text: A member of the public may obtain a copy of any notice of an equipment repurchase lien, including notices affecting the notices from the Secretary of State. The fee for these copies shall be the same as that prescribed in Section 9525 of the Commercial Code.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 1.5. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)