BILL ANALYSIS Senate Research Center H.B. 5232 By: Spiller (Hughes) State Affairs 5/5/2023 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The statute on civil fines for antitrust violations has not been updated since 1983. Since then, a number of issues have become clear. Nearly 40 years of inflation and increased market concentration have significantly weakened the deterrent effect of the fines currently allowed. Moreover, there is a technical error in the statute that exempts non-corporate business organizations from the statute's largest fines. For example, because Google was organized as an LLC, currently it would only be subject to the $100,000 fine for individuals instead of the top fine of $1 million designed for corporations. Also, the civil fines provision does not differentiate between small, mid-sized, and large companies. H.B. 5232 seeks to modify the civil fines provision to increase the caps on the fines that may be imposed and to differentiate between small, mid-sized, and large companies. H.B. 5232 amends current law relating to civil penalties imposed for violations of the Texas Free Enterprise and Antitrust Act of 1983. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 15.20(a), Business and Commerce Code, as follows: (a) Requires an individual or other person adjudged to have violated certain statutes to pay a fine to the state in an amount not to exceed: (1) if an individual, $300,000; or (2) if any other person: (A) $3 million, if the lesser of the person's assets or market capitalization is less than $100 million; (B) $20 million, if the lesser of the person's assets or market capitalization is at least $100 million but less than $500 million; or (C) $30 million, if the lesser of the person's assets or market capitalization is $500 million or more. Deletes existing text requiring every person adjudged to have violated certain statutes to pay a fine to the state not to exceed $1 million if a corporation, or, if any other person, $100,000. SECTION 2. Makes application of Section 15.20(a), Business and Commerce Code, as amended by this Act, prospective. SECTION 3. Effective date: September 1, 2023.
BILL ANALYSIS
Senate Research Center H.B. 5232
By: Spiller (Hughes)
State Affairs
5/5/2023
Engrossed
Senate Research Center
H.B. 5232
By: Spiller (Hughes)
State Affairs
5/5/2023
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The statute on civil fines for antitrust violations has not been updated since 1983. Since then, a number of issues have become clear. Nearly 40 years of inflation and increased market concentration have significantly weakened the deterrent effect of the fines currently allowed. Moreover, there is a technical error in the statute that exempts non-corporate business organizations from the statute's largest fines. For example, because Google was organized as an LLC, currently it would only be subject to the $100,000 fine for individuals instead of the top fine of $1 million designed for corporations. Also, the civil fines provision does not differentiate between small, mid-sized, and large companies. H.B. 5232 seeks to modify the civil fines provision to increase the caps on the fines that may be imposed and to differentiate between small, mid-sized, and large companies.
H.B. 5232 amends current law relating to civil penalties imposed for violations of the Texas Free Enterprise and Antitrust Act of 1983.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 15.20(a), Business and Commerce Code, as follows:
(a) Requires an individual or other person adjudged to have violated certain statutes to pay a fine to the state in an amount not to exceed:
(1) if an individual, $300,000; or
(2) if any other person:
(A) $3 million, if the lesser of the person's assets or market capitalization is less than $100 million;
(B) $20 million, if the lesser of the person's assets or market capitalization is at least $100 million but less than $500 million; or
(C) $30 million, if the lesser of the person's assets or market capitalization is $500 million or more.
Deletes existing text requiring every person adjudged to have violated certain statutes to pay a fine to the state not to exceed $1 million if a corporation, or, if any other person, $100,000.
SECTION 2. Makes application of Section 15.20(a), Business and Commerce Code, as amended by this Act, prospective.
SECTION 3. Effective date: September 1, 2023.