Senator Hurtado's proposal to modify California's Cartwright Act would substantially increase penalties for corporations and individuals engaged in trade conspiracies, raising maximum corporate fines from $1 million to $100 million and individual fines from $250,000 to $1 million.
The legislation introduces a new civil penalty framework allowing prosecutors to seek additional fines up to $1 million per violation. Courts would determine these penalties by examining factors including the violation's severity, duration, and willfulness, along with the defendant's financial status and level of cooperation with investigators. The bill also extends maximum prison terms for individual violators from three to five years in state prison or county jail.
Under the measure, penalties collected through enforcement actions would be distributed based on prosecution authority. Cases brought solely by the Attorney General would direct funds to the state's antitrust account, while district attorney prosecutions would allocate proceeds to county treasuries. Joint prosecutions would split proceeds according to agreements approved by the court. The bill specifies that these enhanced penalties would apply cumulatively with other available remedies under state law, potentially subjecting violators to multiple sanctions for the same conduct.
The legislation maintains the existing four-year statute of limitations for bringing enforcement actions while establishing a mechanism for reimbursing local agencies for costs associated with longer jail terms. This provision requires the Commission on State Mandates to evaluate and approve reimbursement claims from affected jurisdictions.
![]() Anna CaballeroD Senator | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Committee Member | Not Contacted | |
![]() Melissa HurtadoD Senator | Bill Author | Not Contacted | |
![]() Megan DahleR Senator | Committee Member | Not Contacted | |
![]() Kelly SeyartoR Senator | Committee Member | Not Contacted |
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Senator Hurtado's proposal to modify California's Cartwright Act would substantially increase penalties for corporations and individuals engaged in trade conspiracies, raising maximum corporate fines from $1 million to $100 million and individual fines from $250,000 to $1 million.
The legislation introduces a new civil penalty framework allowing prosecutors to seek additional fines up to $1 million per violation. Courts would determine these penalties by examining factors including the violation's severity, duration, and willfulness, along with the defendant's financial status and level of cooperation with investigators. The bill also extends maximum prison terms for individual violators from three to five years in state prison or county jail.
Under the measure, penalties collected through enforcement actions would be distributed based on prosecution authority. Cases brought solely by the Attorney General would direct funds to the state's antitrust account, while district attorney prosecutions would allocate proceeds to county treasuries. Joint prosecutions would split proceeds according to agreements approved by the court. The bill specifies that these enhanced penalties would apply cumulatively with other available remedies under state law, potentially subjecting violators to multiple sanctions for the same conduct.
The legislation maintains the existing four-year statute of limitations for bringing enforcement actions while establishing a mechanism for reimbursing local agencies for costs associated with longer jail terms. This provision requires the Commission on State Mandates to evaluate and approve reimbursement claims from affected jurisdictions.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
5 | 1 | 0 | 6 | PASS |
![]() Anna CaballeroD Senator | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Committee Member | Not Contacted | |
![]() Melissa HurtadoD Senator | Bill Author | Not Contacted | |
![]() Megan DahleR Senator | Committee Member | Not Contacted | |
![]() Kelly SeyartoR Senator | Committee Member | Not Contacted |