BILL NUMBER: SB 122	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 15, 2003
	AMENDED IN SENATE  MAY 12, 2003
	AMENDED IN SENATE  MAY 6, 2003

INTRODUCED BY   Senator Escutia

                        FEBRUARY 4, 2003

   An act to  add Section 17204.6 to the Business and Professions
Code, relating to unfair competition.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 122, as amended, Escutia.  Private enforcement actions.
   Existing law provides remedies for unfair competition that may be
enforced by a governmental agency, including the district attorney,
or by a private party acting for the interests of itself, its
members, or the general public.
   This bill would require, subject to specified exceptions, the
court to review  and approve  attorney's fees in a proposed
settlement, compromise, dismissal, or disposition of an unfair
competition action brought by a private party on behalf of the
general public.  The bill would also specify disgorgement as an
available remedy for acts of unfair competition and would set forth
principles for joining these actions.  The bill would make its
provisions contingent upon AB 95 being enacted and becoming effective
on or before January 1, 2004.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17204.6 is added to the Business and
Professions Code, to read:
   17204.6.  (a) In a private action for relief brought on behalf of
the general public, a court shall review attorney's fees in a
proposed settlement, compromise, dismissal, or disposition on the
merits of an action brought pursuant to this chapter  and shall
approve the fees for payment if they are consistent with applicable
law  .  Any attorney who fails to submit the proposed attorney's
fees for review  and approval  by the court is subject to
disciplinary action by the State Bar of California.
   (b) Subdivision (a) shall not apply to a lawsuit brought by a
labor organization or by a representative of a labor organization or
by a joint labor management committee established pursuant to the
federal Labor Management Corporation Act of 1978 (29 U.S.C. Sec.
175a) or by an established employment or civil rights organization on
behalf of employees or the general public.  For purposes of this
section, an employment or civil rights organization shall be in
existence for a minimum of five years in order to qualify for an
exemption and have as one of its purposes the vindication of labor,
civil, constitutional or human rights.
   (c) Disgorgement relief is an available remedy under Section
17203.  A court shall assure that any disgorgement relief in excess
of any restitution paid by a defendant shall be distributed as a
fluid recovery or cy pres award, to the extent possible, in a manner
designed either to further the purposes of the underlying causes of
action or to promote justice for all Californians.
   (d) (1) All persons may be joined in one action as defendants if
there is asserted against them:
   (A) Any right to relief jointly, severally, or in the alternative,
in respect of or arising out of the same transaction, occurrence, or
series of transactions or occurrences and if any question of law or
fact common to all these persons will arise in the action; or
   (B) A claim, right, or interest adverse to them in the property or
controversy which is the subject of the action.
   (2) It is not necessary that each defendant be interested as to
every cause of action or as to all relief prayed for.  Judgment may
be given against one or more defendants according to their respective
liabilities.
   (3) Where the plaintiff is in doubt as to the person from whom he
or she is entitled to redress, he or she may join two or more
defendants, with the intent that the question as to which, if any, of
the defendants is liable, and to what extent, may be determined
between the parties.
   (4) The fact that individual defendants who are not associates or
affiliates of each other are engaged in the same or similar
businesses and are alleged to have violated the same or similar laws
or regulations shall not, in itself, constitute a basis for joinder
under this chapter.
  SEC. 2.  The provisions of paragraph (4) of subdivision (d) of
Section 17204.6 of the Business and Professions Code added by this
act do not constitute a change in, but are declaratory of, existing
law.
  SEC. 3.  This act shall become operative only if Assembly Bill 95
of the 2003-04 Regular Session is enacted and becomes effective on or
before January 1, 2004.