AB 2230

Bill Subjects

Abstract

(1) Existing law, known as the Cartwright Act, makes every trust unlawful, against public policy, and void, subject to specified exemptions. A "trust" is defined for these purposes as a combination of capital, skill, or acts by 2 or more persons for certain designated purposes. A violation of the act is punishable as a crime. This bill would expand the definition of "trust" under the act to specifically include the capital, skill, or acts of all affiliated persons, as defined. For purposes of the act, the bill would define an "affiliated person" to include, among others, a natural person related within the 3rd degree of consanguinity or affinity to any other person, together with other specified persons with certain ownership interests. The bill would expand the purposes for a trust under the act to include creating or carrying out restrictions in residential housing, preventing or limiting competition in development or redevelopment, construction, leasing, rental, or purchase of residential housing, among other specified acts. The bill would also define the terms "control," "geographic market," "residential housing," and "undue concentration" for purposes of the act. Existing law makes it unlawful for a person to lease or make a sale or contract for the sale of goods, merchandise, machinery, supplies, commodities for use within the state, or to fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser shall not use or deal in the goods, merchandise, machinery, supplies, commodities, or services of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of trade or commerce in any section of the state. This bill would make it unlawful for a person to sell or lease, rent, or make a sale or contract for the lease, rental, or sale of goods, machinery, supplies, commodities, or rental housing located within this state. The bill would further make it unlawful to engage in specified related actions concerning price fixing in residential housing and would make other related changes to this provision. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program. (2) Existing law, the Unfair Practices Act, makes certain business practices unlawful and regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising. These unlawful acts include selling an article or product in this state at less than the cost for the purpose of injuring competitors or destroying competition. A violation of the act is punishable as a crime. Existing law defines "sell," for purposes of the act, to include selling, offering for sale, or advertising for sale. This bill would expand the above-described definition to instead refer to "sell or lease," and would define it to include selling, offering for sale, rental, or lease, or advertising for sale, rental, or lease. The bill would also incorporate by reference the above-described definitions from the Cartwright Act. Because the bill would expand the scope of activities that are a crime under the act, the bill would impose a state-mandated local program. The bill would include related legislative findings. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.