Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2538


Introduced by Assembly Member Nazarian

February 19, 2016


begin deleteAn act to amend Section 554 of the Business and Professions Code, relating to healing arts. end deletebegin insertAn act to amend Sections 16720 and 16727 of the Business and Professions Code, relating to business regulation.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2538, as amended, Nazarian. begin deleteOphthalmia neonatorum. end deletebegin insertBusiness regulation: radius restrictions.end insert

begin insert

(1) Existing law makes every trust, subject to specified exemptions, unlawful, against public policy, and void. A “trust” is defined for these purposes as a combination of capital, skill, or acts by 2 or more persons for certain designated purposes. Under existing law, these purposes include, among others, creating or carrying out restrictions in trade or commerce or preventing competition in manufacturing, making, transportation, sale, or purchase of merchandise, produce, or any commodity. The act also makes it unlawful for any person to lease or make a sale or contract for the sale of products on the condition, agreement, or understanding that the lessee or purchaser not use or deal in the products or services of a competitor where the effect is to substantially lessen competition or tend to create a monopoly in any line of commerce. A violation of the act is punishable as a crime.

end insert
begin insert

This bill would expand the definition of “trust” by including as one of those purposes, and would also make it unlawful under the act to, include in any outlet center lease for a retail establishment between a lessor and lessee, a radius restriction prohibiting the lessee from opening or operating the same retail establishment in a separate outlet center located 10 miles or more in distance from the leased retail establishment.

end insert
begin insert

Because the bill would add to the activities prohibited by the act, the violation of which would be punishable as a crime, the bill would impose a state-mandated local program.

end insert
begin insert

(2) 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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

Existing law requires a doctor, midwife, or other person assisting a mother or child at childbirth to report a case of ophthalmia neonatorum in the child to the local health officer, as specified. Existing law requires the local health officer to take specific actions with respect to each reported case.

end delete
begin delete

This bill would make technical, nonsubstantive changes to those requirements.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 16720 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

16720.  

A trust is a combination of capital,begin delete skillend deletebegin insert skill,end insert or acts
4by two or more persons for any of the following purposes:

5(a) To create or carry out restrictions in trade or commerce.

6(b) To limit or reduce the production, or increase the price of
7merchandise or of any commodity.

8(c) To prevent competition in manufacturing, making,
9transportation,begin delete saleend deletebegin insert sale,end insert or purchase of merchandise,begin delete produceend delete
10begin insert produce,end insert or any commodity.

11(d) To fix at any standard or figure, whereby its price to the
12public or consumer shall be in any manner controlled or
13established, any article or commodity of merchandise,begin delete produceend delete
14begin insert produce,end insert or commerce intended for sale, barter,begin delete useend deletebegin insert use,end insert or
15consumption in this State.

P3    1(e) To make or enter into or execute or carry out any contracts,
2begin delete obligationsend deletebegin insert obligations,end insert or agreements of any kind or description,
3by which they do all or any or any combination of the following:

4(1) Bind themselves not to sell, disposebegin delete ofend deletebegin insert of,end insert or transport any
5article or any commodity or any article of trade, use, merchandise,
6begin delete commerceend deletebegin insert commerce,end insert or consumption below a common standard
7figure, or fixed value.

8(2) Agree in any manner to keep the price ofbegin delete suchend deletebegin insert anend insert article,
9begin delete commodityend deletebegin insert commodity,end insert or transportation at a fixed or graduated
10figure.

11(3) Establish or settle the price of any article,begin delete commodityend delete
12begin insert commodity,end insert or transportation between them or themselves and
13others, so as directly or indirectly to preclude a free and unrestricted
14competition among themselves, or any purchasers or consumers
15in the sale or transportation ofbegin delete any suchend deletebegin insert anend insert article or commodity.

16(4) Agree to pool,begin delete combineend deletebegin insert combine,end insert or directly or indirectly
17unite any interests that they may have connected with the sale or
18transportation ofbegin delete any suchend deletebegin insert anend insert article or commodity, that its price
19might in any manner be affected.

begin insert

20(f) Include in any outlet center lease for a retail establishment
21between a lessor and lessee a radius restriction prohibiting the
22lessee from opening or operating the same retail establishment in
23a separate outlet center located 10 miles or more in distance from
24the leased retail establishment.

end insert
25begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 16727 of the end insertbegin insertBusiness and Professions Codeend insert
26begin insert is amended to read:end insert

27

16727.  

begin deleteIt shall be unlawful for any person to lease end deletebegin insertIt shall be
28unlawful for any person to do either of the following:end insert

29begin insert(a)end insertbegin insertend insertbegin insertLease end insertor make a sale or contract for the sale of goods,
30merchandise, machinery, supplies,begin insert orend insert commodities for use within
31the State, or to fix a price charged therefor, or discount from, or
32rebate upon,begin delete suchend deletebegin insert theend insert price, on the condition,begin delete agreementend deletebegin insert agreement,end insert
33 or understanding that the lessee or purchaserbegin delete thereofend delete shall not use
34or deal in the goods, merchandise, machinery, supplies,
35commodities, or services of a competitor or competitors of the
36lessor or seller, where the effect ofbegin delete suchend deletebegin insert theend insert lease, sale, or contract
37for sale orbegin delete suchend deletebegin insert theend insert condition,begin delete agreementend deletebegin insert agreement,end insert or
38understanding may be to substantially lessen competition or tend
39to create a monopoly in any line of trade or commerce in any
40section of the State.

begin insert

P4    1(b) Include in any outlet center lease for a retail establishment
2between a lessor and lessee a radius restriction prohibiting the
3lessee from opening or operating the same retail establishment in
4a separate outlet center located 10 miles or more in distance from
5the leased retail establishment.

end insert
6begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.

end insert
begin delete
15

SECTION 1.  

Section 554 of the Business and Professions Code
16 is amended to read:

17

554.  

The local health officer shall do all of the following:

18(a) Investigate each case filed with him or her pursuant to this
19article, and all other cases coming to his or her attention.

20(b) Report all cases of ophthalmia neonatorum coming to his
21 or her knowledge, and the result of all investigations that he or she
22makes to the department, in the form that the department directs.

23(c) Conform to the rules and regulations that the department
24 promulgates for the purpose of carrying out this article.

end delete


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