BILL NUMBER: AB 1835	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Logue

                        FEBRUARY 12, 2010

   An act to add Section 17211 to the Business and Professions Code,
relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1835, as introduced, Logue. Unfair competition: exemption.
   Existing law prohibits unfair competition, including, but not
limited to, unlawful business acts or practices, and authorizes
actions for relief under those provisions to be brought by specified
governmental agencies or by a person who has suffered injury in fact
and has lost money or property as a result of the unfair competition.

   This bill would exempt a small business, as defined, from suit and
liability under those provisions if the business engages in unfair
competition by acting pursuant to a contract for services with a
public entity that the business entered into in good faith, without
knowledge that acting pursuant to that contract would constitute
unfair competition.
   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 17211 is added to the Business and Professions
Code, to read:
   17211.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Public entity" means the state, or a city, county, city and
county, special district, or other political subdivision of the
state.
   (2) "Small business" means any unincorporated business,
partnership, corporation, association, or organization with fewer
than 50 full-time employees.
   (b) A small business that enters into a contract for services with
a public entity in good faith, without knowledge that acting
pursuant to that contract would constitute unfair competition, shall
be immune from suit and liability under this chapter for engaging in
unfair competition by acting pursuant to that contract.