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2 | 2 | | HOUSE DOCKET, NO. 4047 FILED ON: 1/17/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1982 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Lindsay N. Sabadosa |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to the protection of small businesses and workers. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Lindsay N. Sabadosa1st Hampshire1/17/2025 1 of 7 |
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16 | 16 | | HOUSE DOCKET, NO. 4047 FILED ON: 1/17/2025 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1982 |
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18 | 18 | | By Representative Sabadosa of Northampton, a petition (accompanied by bill, House, No. 1982) |
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19 | 19 | | of Lindsay N. Sabadosa relative to the Massachusetts Antitrust Act. The Judiciary. |
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20 | 20 | | The Commonwealth of Massachusetts |
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21 | 21 | | _______________ |
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22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
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23 | 23 | | (2025-2026) |
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24 | 24 | | _______________ |
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25 | 25 | | An Act relative to the protection of small businesses and workers. |
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26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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27 | 27 | | of the same, as follows: |
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28 | 28 | | 1 SECTION 1. Section 2 of chapter 93 of the General Laws, as appearing in the 2022 |
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29 | 29 | | 2Official Edition, is hereby amended by inserting after the definition of “Demand” the following 3 |
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30 | 30 | | 3definitions:- |
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31 | 31 | | 4 "Monopoly power", the power to control prices or exclude competition. A firm has |
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32 | 32 | | 5monopoly power if the firm is able to profitably raise prices substantially above the competitive |
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33 | 33 | | 6level for a significant period of time. A firm also has monopoly power if the firm can exclude |
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34 | 34 | | 7competitors. |
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35 | 35 | | 8 "Monopsony", a market condition where only one buyer exists. |
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36 | 36 | | 9 "Monopsony power", where an individual buyer is able to influence demand and price for |
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37 | 37 | | 10a good or service. |
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38 | 38 | | 11 SECTION 2. Said section 2 of said chapter 93, as so appearing, is hereby further |
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39 | 39 | | 12amended by striking out the definition of “New England”. 2 of 7 |
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40 | 40 | | 13 SECTION 3. Said section 2 of said chapter 93, as so appearing, is hereby further |
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41 | 41 | | 14amended by striking out, in lines 17 and 18, the words “; provided, however, that trade or |
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42 | 42 | | 15commerce shall not include the conveyance, transfer or use of real property”. |
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43 | 43 | | 16 SECTION 4. Section 4 of said chapter 93, as so appearing, is hereby amended by adding |
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44 | 44 | | 17the following paragraph:- |
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45 | 45 | | 18 Every contract, agreement, arrangement or combination shall be against public policy and |
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46 | 46 | | 19unlawful if: |
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47 | 47 | | 20 (i) it establishes or maintains a monopoly or monopsony in the conduct of any business, |
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48 | 48 | | 21trade or commerce or in the furnishing of any service in the commonwealth; |
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49 | 49 | | 22 (ii) it restrains or may restrain competition or the free exercise of any activity in the |
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50 | 50 | | 23conduct of any business, trade or commerce or in the furnishing of any service in the |
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51 | 51 | | 24commonwealth; or |
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52 | 52 | | 25 (iii) it restrains or may restrain, for the purpose of establishing or maintaining a |
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53 | 53 | | 26monopoly or monopsony or unlawfully interfering with the free exercise of any activity in the |
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54 | 54 | | 27conduct of any business, trade or commerce or in the furnishing of any service in the |
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55 | 55 | | 28commonwealth, any business, trade or commerce or the furnishing of any service. |
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56 | 56 | | 29 SECTION 5. Said chapter 93 is hereby further amended by striking out section 5, as so |
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57 | 57 | | 30appearing, and inserting in place the following section:- |
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58 | 58 | | 31 Section 5. (a) It shall be unlawful for any person or persons to monopolize or |
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59 | 59 | | 32monopsonize, or attempt to monopolize or monopsonize, or combine or conspire with any other 3 of 7 |
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60 | 60 | | 33person or persons to monopolize or monopsonize any business, trade or commerce or the |
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61 | 61 | | 34furnishing of any service in the commonwealth. |
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62 | 62 | | 35 (b)(1) It is unlawful for any person or persons with a dominant position in the conduct of |
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63 | 63 | | 36any business, trade or commerce, in any labor market, or in the furnishing of any service in this |
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64 | 64 | | 37commonwealth, to abuse the dominant position. |
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65 | 65 | | 38 (2) In any action brought under this subsection, a person's dominant position may be |
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66 | 66 | | 39established by direct evidence, indirect evidence, or a combination of the two. Examples of |
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67 | 67 | | 40direct evidence include, but are not limited to, reduction in output or in quality of goods or |
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68 | 68 | | 41services, the imposition of supracompetitive prices, or the ability to force, induce or otherwise |
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69 | 69 | | 42coerce a supplier to offer a lower price, discount, advertising allowance or other service than |
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70 | 70 | | 43what the supplier offers others. In labor markets, examples of direct evidence of a dominant |
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71 | 71 | | 44position include, but are not limited to, the imposition of subcompetitive wages or working |
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72 | 72 | | 45conditions; the repeated violation of laws protecting workers such as labor laws, wage-and-hour |
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73 | 73 | | 46laws and workplace health and safety laws; or the interference with, restraint of or coercion of |
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74 | 74 | | 47workers in the exercise of their full freedom of association to obtain acceptable terms and |
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75 | 75 | | 48conditions of employment, including through self-organization, designation of workplace |
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76 | 76 | | 49representatives and engagement in concerted activities for the purposes of collective bargaining |
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77 | 77 | | 50or other mutual aid or protection. Direct evidence of dominant position includes conduct that is |
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78 | 78 | | 51carried out directly or indirectly through another entity or person such as an independent |
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79 | 79 | | 52contractor or other intermediary. |
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80 | 80 | | 53 (3) A person's dominant position may also be established by indirect evidence such as the |
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81 | 81 | | 54person's share of a relevant market. A person who has a share of 40 per cent or greater of a 4 of 7 |
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82 | 82 | | 55relevant market as a seller shall be presumed to have a dominant position in that market under |
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83 | 83 | | 56this subsection. A person who has a share of 30 per cent or greater of a relevant market as a |
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84 | 84 | | 57buyer shall be presumed to have a dominant position in that market under this subsection. When |
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85 | 85 | | 58determining a relevant market, courts shall examine factors including, but not limited to, industry |
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86 | 86 | | 59or public recognition of the market as separate and distinct, the product's peculiar characteristics |
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87 | 87 | | 60and uses, unique protection facilities, distinct customers, distinct prices, sensitivity to price |
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88 | 88 | | 61changes and specialized vendors. |
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89 | 89 | | 62 (4) If direct evidence is sufficient to demonstrate that a person has a dominant position or |
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90 | 90 | | 63has abused such a dominant position, no court shall require definition of a relevant market in |
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91 | 91 | | 64order to evaluate the evidence, find liability or find that a claim has been stated under this |
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92 | 92 | | 65subsection. |
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93 | 93 | | 66 (5) In any action brought under this subsection, abuse of a dominant position may |
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94 | 94 | | 67include, but is not limited to, conduct that tends to foreclose or limit the ability or incentive of |
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95 | 95 | | 68one or more actual or potential competitors to compete, such as leveraging a dominant position |
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96 | 96 | | 69in one market to limit competition in a separate market; refusing to deal with another person with |
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97 | 97 | | 70the effect of unnecessarily excluding or handicapping actual or potential competitors; coercing |
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98 | 98 | | 71the purchaser of one product, service or contract into purchasing or obtaining a separate and |
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99 | 99 | | 72distinct product, service or contract; or engaging in, or coercing a third party into, an exclusive |
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100 | 100 | | 73agreement or contract that serves to foreclose or increase costs for a competitor. In labor |
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101 | 101 | | 74markets, abuse may include, but is not limited to, imposing restraints, direct or indirect, on the |
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102 | 102 | | 75mobility of workers between employers or on the ability of workers to seek employment from |
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103 | 103 | | 76multiple employers; restricting the freedom of workers and independent contractors to disclose 5 of 7 |
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104 | 104 | | 77wage and benefit information; and wage discrimination based on any undisclosed or hidden |
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105 | 105 | | 78considerations. |
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106 | 106 | | 79 (c)(1) Except as provided in paragraph (2) of this subsection, the following restraints are |
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107 | 107 | | 80presumed to be illegal when engaged in by a firm in a dominant position : |
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108 | 108 | | 81 (i) any restraint that requires another person to deal exclusively or primarily with the firm |
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109 | 109 | | 82imposing the restraint or another person specified by that firm or any restraint that has the |
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110 | 110 | | 83necessary effect of requiring another person to deal exclusively or primarily with the firm |
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111 | 111 | | 84imposing the restraint or another person specified by that firm; |
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112 | 112 | | 85 (ii) any restraint that conditions the sale or purchase of any product or services on an |
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113 | 113 | | 86agreement to sell or purchase another product or service; |
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114 | 114 | | 87 (iii) any restraint on a person's ability to engage in a profession, trade or business of any |
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115 | 115 | | 88kind, including any restraint on a person's ability to employ another person; |
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116 | 116 | | 89 (iv) any restraint on the prices or wages offered by another firm; |
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117 | 117 | | 90 (v) any restraint on another firm's right to independently decide whether to recognize a |
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118 | 118 | | 91union of its employees or to otherwise agree to negotiate with its employees collectively over |
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119 | 119 | | 92terms and conditions of employment; |
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120 | 120 | | 93 (vi) any restraint that the attorney general, through regulation or rulemaking, determines |
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121 | 121 | | 94poses a substantial risk of harming competition that is not already presumed illegal; and |
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122 | 122 | | 95 (vii) any additional restraint that the attorney general determines, through rulemaking, |
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123 | 123 | | 96generally serves no legitimate business purpose that cannot be achieved in some less restrictive |
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124 | 124 | | 97way. 6 of 7 |
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125 | 125 | | 98 (2) Paragraph (1) of this subsection shall not apply if the defendant establishes, by clear |
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126 | 126 | | 99and convincing evidence, that the pro-competitive benefits of the challenged conduct: (i) are |
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127 | 127 | | 100achievable only through that conduct; and (ii) outweigh that conduct's harm to competition. The |
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128 | 128 | | 101harm to competition in one market from the challenged conduct may not be offset by purported |
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129 | 129 | | 102benefits in a separate market; and the harm to a person or persons from the challenged conduct |
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130 | 130 | | 103may not be offset by purported benefits to another person or persons. |
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131 | 131 | | 104 (d)(1) The attorney general shall issue guidance on how it will achieve the purposes of |
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132 | 132 | | 105subsection (b). The attorney general may issue other guidance with respect to subsection (b). |
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133 | 133 | | 106 (2) Nothing in this section shall be deemed to diminish the jurisdiction of the department |
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134 | 134 | | 107of public utilities. |
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135 | 135 | | 108 SECTION 6. Section 10 of said chapter 93, as so appearing, is hereby amended by |
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136 | 136 | | 109striking out the first paragraph and inserting in place thereof the following paragraph:- |
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137 | 137 | | 110 Any person who knowingly violates sections 4 or 5 with specific intent to injure any |
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138 | 138 | | 111person, or knowingly aids or participates in such violation with specific intent to injure any |
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139 | 139 | | 112person, is guilty of a felony, and on conviction thereof, shall be punished by a fine not exceeding |
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140 | 140 | | 113$100,000,000 if a corporation, or, if any other person, by a fine not exceeding $100,000 or by |
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141 | 141 | | 114imprisonment not exceeding 1 year, or both. |
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142 | 142 | | 115 SECTION 7. Said chapter 93 is hereby further amended by inserting after section 13, as |
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143 | 143 | | 116so appearing, the following section:- 7 of 7 |
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144 | 144 | | 117 Section 13A. In any action alleging a violation of a provision of this Act, the attorney |
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145 | 145 | | 118general and private litigants shall recover reasonable fees and costs for its expert witnesses and |
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146 | 146 | | 119consultants if the attorney general or private litigants prevail in such action. |
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