BILL NUMBER: AB 2538 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 19, 2016
An act to amend Section 554 of the Business and
Professions Code, relating to healing arts. An act to
amend Sections 16720 and 16727 of the Business and Professions Code,
relating to business regulation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2538, as amended, Nazarian. Ophthalmia neonatorum.
Business regulation: radius restrictions.
(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.
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.
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.
(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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
This bill would make technical, nonsubstantive changes to those
requirements.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16720 of the
Business and Professions Code is amended to read:
16720. A trust is a combination of capital, skill
skill, or acts by two or more persons for any of
the following purposes:
(a) To create or carry out restrictions in trade or commerce.
(b) To limit or reduce the production, or increase the price of
merchandise or of any commodity.
(c) To prevent competition in manufacturing, making,
transportation, sale sale, or purchase
of merchandise, produce produce, or any
commodity.
(d) To fix at any standard or figure, whereby its price to the
public or consumer shall be in any manner controlled or established,
any article or commodity of merchandise, produce
produce, or commerce intended for sale, barter,
use use, or consumption in this State.
(e) To make or enter into or execute or carry out any contracts,
obligations obligations, or agreements
of any kind or description, by which they do all or any or any
combination of the following:
(1) Bind themselves not to sell, dispose of
of, or transport any article or any commodity or any
article of trade, use, merchandise, commerce
commerce, or consumption below a common standard figure, or
fixed value.
(2) Agree in any manner to keep the price of such
an article, commodity
commodity, or transportation at a fixed or graduated figure.
(3) Establish or settle the price of any article,
commodity commodity, or transportation between
them or themselves and others, so as directly or indirectly to
preclude a free and unrestricted competition among themselves, or any
purchasers or consumers in the sale or transportation of
any such an article or commodity.
(4) Agree to pool, combine combine,
or directly or indirectly unite any interests that they may have
connected with the sale or transportation of any such
an article or commodity, that its price might in
any manner be affected.
(f) 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.
SEC. 2. Section 16727 of the Business
and Professions Code is amended to read:
16727. It shall be unlawful for any person to lease
It shall be unlawful for any person to do either of
the following:
(a) Lease or make a sale or
contract for the sale of goods, merchandise, machinery, supplies,
or commodities for use within the State, or to fix a price
charged therefor, or discount from, or rebate upon, such
the price, on the condition, agreement
agreement, or understanding that the lessee or
purchaser thereof shall not use or deal in the
goods, merchandise, machinery, supplies, commodities, or services of
a competitor or competitors of the lessor or seller, where the effect
of such the lease, sale, or contract
for sale or such the condition,
agreement agreement, or understanding
may be to substantially lessen competition or tend to create a
monopoly in any line of trade or commerce in any section of the
State.
(b) 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.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 554 of the Business and
Professions Code is amended to read:
554. The local health officer shall do all of the following:
(a) Investigate each case filed with him or her pursuant to this
article, and all other cases coming to his or her attention.
(b) Report all cases of ophthalmia neonatorum coming to his or her
knowledge, and the result of all investigations that he or she makes
to the department, in the form that the department directs.
(c) Conform to the rules and regulations that the department
promulgates for the purpose of carrying out this article.