Senator Hurtado’s measure reframes the Cartwright Act enforcement by elevating penalties for corporate conspiracies and introducing a new civil-penalty mechanism, while preserving the existing framework for individuals and clarifying that remedies may stack with other state-law tools. The core change is a substantial increase in corporate fines—up to six million dollars or the amount defined by the gain/loss framework, whichever is greater—and the addition of a civil penalty regime of up to one million dollars per violation, in addition to the current criminal and gain/loss-based sanctions. The bill also adds a general statement that remedies under this chapter are cumulative with remedies under other state law.
Key mechanisms and details include: for corporate violators, the penalties can be the greater of six million dollars or the applicable gain/loss amount calculated as twice the gross gain or twice the gross loss from the violation; for individual violators, penalties remain tied to imprisonment ranges set by the Penal Code and a fine not exceeding the greater of one million dollars or the applicable gain/loss amount. The new civil-penalty regime authorizes a civil penalty of up to one million dollars per violation, assessed in civil actions by the Attorney General or district attorney, with factors guiding the amount: nature and seriousness of misconduct, the number and persistence of violations, duration, willfulness, the defendant’s assets and net worth, and the level of cooperation in investigation and litigation. Penalties under the civil provision accrue to the state or to the county treasurer depending on which prosecuting office brought the action, and are to be deposited consistent with existing money-disposition rules. Actions under the criminal/penalty framework continue to be subject to a four-year statute of limitations for commencing the action, and a four-year limit remains in place for the related enforcement provisions.
The measure also codifies a cumulative-remedies principle, clarifying that penalties and remedies under this act are in addition to, and may be combined with, other state-law remedies. Enforcement remains with the Attorney General and district attorneys, with civil penalties addressed through the new per-violation mechanism and criminal penalties retained for individuals and corporations under the updated framework. The bill’s fiscal and implementation context signals a mandated fiscal-committee review and suggests potential impacts on agency workloads and court resources, though the text does not specify an operative date within the provided material. The reform landscape thus combines higher fixed penalties for corporate conduct, a new per-violation civil-penalty tool, and a clarified, additive set of remedies within the state’s antitrust enforcement framework.
![]() Melissa HurtadoD Senator | Bill Author | Not Contacted |
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Senator Hurtado’s measure reframes the Cartwright Act enforcement by elevating penalties for corporate conspiracies and introducing a new civil-penalty mechanism, while preserving the existing framework for individuals and clarifying that remedies may stack with other state-law tools. The core change is a substantial increase in corporate fines—up to six million dollars or the amount defined by the gain/loss framework, whichever is greater—and the addition of a civil penalty regime of up to one million dollars per violation, in addition to the current criminal and gain/loss-based sanctions. The bill also adds a general statement that remedies under this chapter are cumulative with remedies under other state law.
Key mechanisms and details include: for corporate violators, the penalties can be the greater of six million dollars or the applicable gain/loss amount calculated as twice the gross gain or twice the gross loss from the violation; for individual violators, penalties remain tied to imprisonment ranges set by the Penal Code and a fine not exceeding the greater of one million dollars or the applicable gain/loss amount. The new civil-penalty regime authorizes a civil penalty of up to one million dollars per violation, assessed in civil actions by the Attorney General or district attorney, with factors guiding the amount: nature and seriousness of misconduct, the number and persistence of violations, duration, willfulness, the defendant’s assets and net worth, and the level of cooperation in investigation and litigation. Penalties under the civil provision accrue to the state or to the county treasurer depending on which prosecuting office brought the action, and are to be deposited consistent with existing money-disposition rules. Actions under the criminal/penalty framework continue to be subject to a four-year statute of limitations for commencing the action, and a four-year limit remains in place for the related enforcement provisions.
The measure also codifies a cumulative-remedies principle, clarifying that penalties and remedies under this act are in addition to, and may be combined with, other state-law remedies. Enforcement remains with the Attorney General and district attorneys, with civil penalties addressed through the new per-violation mechanism and criminal penalties retained for individuals and corporations under the updated framework. The bill’s fiscal and implementation context signals a mandated fiscal-committee review and suggests potential impacts on agency workloads and court resources, though the text does not specify an operative date within the provided material. The reform landscape thus combines higher fixed penalties for corporate conduct, a new per-violation civil-penalty tool, and a clarified, additive set of remedies within the state’s antitrust enforcement framework.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
29 | 8 | 3 | 40 | PASS |
![]() Melissa HurtadoD Senator | Bill Author | Not Contacted |