The California Resale Royalty Act (Civil Code section 986), which went into effect on January 1, 1977, entitles artists to a royalty payment upon the resale of their art if the transaction takes place in California or the seller is based in the state. It was the only law of its kind implemented in the United States. On July 6, 2018, the U.S. Court of Appeals for the Ninth Circuit ruled that the California Resale Royalties Act was preempted by the Copyright Act of 1976. Now, only works resold from January 1, 1977 to January 1, 1978, when the Copyright Act became effective, are eligible for the royalty payment.