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<ns0:Id>20250AB__177699INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-09</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Aguiar-Curry</ns0:AuthorText>
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<ns0:Name>Aguiar-Curry</ns0:Name>
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<ns0:Title> An act to amend Section 16720 of the Business and Professions Code, relating to business regulation.</ns0:Title>
<ns0:RelatingClause>business regulation</ns0:RelatingClause>
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<ns0:Subject>Cartwright Act: trust.</ns0:Subject>
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<html:p>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 prohibited purposes. A violation of the act is punishable as a crime.</html:p>
<html:p>This bill would, instead, define a trust as a combination of capital, skill, or acts by one or more persons. 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.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 16720 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>16720.</ns0:Num>
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<html:p>A trust is a combination of capital, skill or acts by one or more persons for any of the following purposes:</html:p>
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(a)
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To create or carry out restrictions in trade or commerce.
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(b)
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To limit or reduce the production, or increase the price of merchandise or of any commodity.
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(c)
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To prevent competition in manufacturing, making, transportation, sale or purchase of merchandise, produce or any commodity.
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(d)
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To fix
at any standard or figure, whereby its price to the public or consumer shall be in any manner controlled or established, any article or commodity of merchandise, produce or commerce intended for sale, barter, use or consumption in this State.
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(e)
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To make or enter into or execute or carry out any contracts, obligations or agreements of any kind or description, by which they do all or any or any combination of any of the following:
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<html:p>
(1)
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Bind themselves not to sell, dispose of or transport any article or any commodity or any article of trade, use, merchandise, commerce or consumption below a common standard figure, or fixed value.
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<html:p>
(2)
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Agree in any manner to keep the price of such article, commodity or transportation at a fixed or graduated figure.
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<html:p>
(3)
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Establish or settle the price of any article, commodity or transportation between them or themselves and others, so as directly or indirectly to preclude a free and unrestricted competition among themselves, or any purchasers or consumers in the sale or transportation of any such article or commodity.
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<html:p>
(4)
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Agree to pool, combine or directly or indirectly unite any interests that they may have connected with the sale or transportation of any such article or commodity, that its price might in any manner be affected.
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<ns0:Num>SEC. 2.</ns0:Num>
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No reimbursement is required by this act pursuant to Section 6 of Article XIII
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B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
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B of the California Constitution.
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