Conspiracy against trade: punishment.
For individual violators, the maximum imprisonment term is proposed to increase from three years to a range of two to five years, alongside a rise in individual fines from $250,000 to $1,000,000. Additionally, the bill establishes a new civil penalty of $1,000,000 for violators, which would be pursued through civil actions initiated by the Attorney General or district attorneys. This additional layer of financial consequence is intended to further discourage illegal conspiracies and provide stricter enforcement mechanisms.
Senate Bill 763, introduced by Senator Hurtado, aims to amend the Business and Professions Code by increasing penalties for violations related to conspiracy against trade. The bill builds on the existing Cartwright Act, which regulates trusts and trade practices within California. It significantly heightens the maximum fines imposed on corporations found guilty of such violations from $1,000,000 to $100,000,000, aiming to deter anti-competitive behavior among businesses.
Opposition to the bill may arise concerning the implications of such heavy penalties on legitimate business practices. Critics could argue that the increased fines and punitive measures may disproportionately affect smaller businesses lacking resources to withstand lengthy legal battles. Thus, while the intention is to curb anti-competitive practices, there exist concerns regarding the bill's potential chilling effect on entrepreneurship and business operations within the state, particularly among smaller entities.
The bill also ensures local agencies are reimbursed for costs mandated by the state, highlighting a recognition of the financial implications on local governance in the enforcement of this new legislation.