Capitol Briefs: Antitrust, cost drivers and conversion therapy

In this week’s Capitol Briefs we look at a handful of bills lawmakers have under consideration as we head toward the April 24^th deadline for policy committees to hear and report to fiscal committees fiscal bills introduced in their chamber.

Antitrust legislation clears committee: A bill seeking to expand protections for small businesses and consumers against free market manipulation passed through the judiciary committee on Tuesday, despite concern among lawmakers over its legal ambiguity.

The COMPETE Act (AB 1776) would offer guidelines for courts to consider when determining if a large company benefits from predatory business tactics. COMPETE would serve as an update to the 1907 Cartwright Act, California’s central antitrust law that builds upon federal standards on monopoly agreements between competing businesses. COMPETE would amend state law to include singular companies practicing anti-competitive tactics, such as price fixing.

Abiel Garcia, the attorney representing bill author and Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters) said the guidelines provided to the courts are not enough on their own to take action against a company. Successfully doing so would also require evidence of negative effects on market competition.

“In an antitrust case, you have to look at all of the circumstances on a case by case basis,” he said.

Opponents say guidelines are loose and fail to define specific behaviors that could penalize businesses. They argue the bill would open small businesses up to a wave of lawsuits, triggering capital flight and a decline of innovation in fields such as rare disease therapies.

“No court has ever defined what a single firm restraint of trade is,” said Eric Enson, representing the California Chamber of Commerce. “With this bill, we don’t know what’s unlawful.”

Members of the committee advanced the bill to the Appropriations Committee on a 9-3 vote, though several Committee members urged Aguiar-Curry to continue speaking with the opposition to address their concerns.

More interesting bills on the move: Lawmakers in both houses acted on several measures this week, including:

SB 934, a proposal from Sen. Scott Wiener (D-San Francisco) that would, among several things, allow those who as minors underwent so-called “conversion therapy” more time to seek civil remedies through malpractice lawsuits. Conversion therapy is a form of talk therapy that attempts to change an LGBTQ person’s sexual orientation. The proposal is a direct response to a March 31^st ruling by the Supreme Court of the United States that overturned a Colorado law that banned the use of conversion therapy on minors. The bill passed through the Senate Judiciary Committee on a 10-2 vote and is now headed to the Senate Appropriations Committee.

AB 1720, authored by Assemblymember Matt Haney (D-San Francisco) that would cap the resale price of concert and live event tickets at no more than 10 percent above face value. The measure cleared the Assembly Committee on Arts, Sports, Tourism & Entertainment on a 6-1 vote and is now in the Assembly Committees on Privacy & Consumer Protection and Judiciary.

SB 1015, a bill from Sen. Tony Strickland (R-Huntington Beach) that would, among other things, create a new offense in California for adults who recruit, direct, or coerce a minor to harm or exploit another child. The bill heads now to the Senate Appropriations Committee.

CA Chamber adds to ‘Cost Drivers’ list: The California Chamber of Commerce has added a half dozen bill to its annual list formerly known as the “job killers.” The initial collection, now known as the “cost drivers” list, came out in March. The six bills the Chamber added to that list include the aforementioned AB 1776, authored by Assembly Majority Leader Cecilia Aguiar-Curry as well as:

AB 2021, authored by Assemblymember Pilar Schiavo (D-Chatsworth), which would create a financial incentive for individuals to file claims for violations of the California Consumer Privacy Act. It is now pending in the Assembly Privacy & Consumer Protection Committee.

AB 2034 from Assemblymember Dawn Addis (D-Morro Bay), which would create new state-specific regulations regarding food additives. It is now in the Assembly Committee on Environmental Safety & Toxic Materials.

AB 2095 from Assemblymember Alex Lee (D-San Jose), which would, among several things, bar employers from rejecting job applicants solely over their criminal record. The measure is now pending in the Assembly Labor and Employment Committee.

AB 2569, authored by Assemblymember Gregg Hart (D-Santa Barbara), which would significantly expand CEQA impact report requirements. The bills in now in the Assembly Committee on Natural Resources.

AB 2646 from Assemblymember Maggie Krell (D-Sacramento), which would set the minimum wage for agricultural workers at $19.75 per hour. It is in the Assembly Committee on Labor and Employment.

This piece was compiled by Capitol Weekly editor Rich Ehisen and intern Chris Ramirez. 

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