AB 1345 California Assembly · 2025-2026 Regular Session

Cartwright Act: restraint of trade.

Summary

Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts. Under existing law, a violation of the Cartwright Act is punishable as a crime. This bill would provide that is unlawful for one or more persons to act, cause, take, or direct a measure, action, or event that is either in restraint of trade, as specified, or to monopolize or monopsonize, as specified. Because the bill would expand the scope of activities punishable as a crime under the Cartwight Act, the bill would impose a state-mandated local program. The bill would make related findings and declarations. 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.

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action Feb 2, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

02/21/25 - Introduced → 04/07/25 - Amended Assembly · 5 edits · Apr 7, 2025

MODERATE

AB 1345 was dramatically expanded from a purely technical cleanup of Section 1 of the Business and Professions Code into a major antitrust reform. The amended version adds a new Section 16720.1 that makes it a crime for one or more persons to act, cause, take, or direct any measure in restraint of trade or to monopolize or monopsonize. This significantly broadens the Cartwright Act by covering unilateral conduct, explicitly naming monopsony (buyer-side market power), and extending liability to those who cause or direct anticompetitive actions rather than only those who directly participate.

Scope change

The bill's scope changed entirely. Originally it was a nonsubstantive technical fix to Section 1 (correcting 'known known' to 'known'). The amended version adds a substantive new criminal antitrust provision that expands the Cartwright Act to cover unilateral conduct, monopsony, and indirect participation in anticompetitive behavior, making these punishable as crimes.

SCOPE

Added new Section 16720.1 to the Business and Professions Code making it unlawful for one or more persons to act, cause, take, or direct a measure in restraint of trade or to monopolize/monopsonize. This expands criminal antitrust liability beyond agreements between parties to include unilateral conduct and indirect participation.

DEFINITION

Explicitly defines 'restraint of trade' to include any action cognizable under Section 16720, whether directed, caused, or performed by one or more persons. Explicitly includes monopsony (buyer-side market power) alongside monopoly, which is significant for labor markets.

REQUIREMENT

Added legislative findings and declarations stating that protecting competition includes protecting workers' freedom to choose employment, expressing concern about market consolidation by dominant corporations, and declaring the need for strong definitions of monopolization and prohibitions on unilateral anticompetitive conduct.

FISCAL

Changed fiscal committee designation from 'no' to 'yes' and state-mandated local program from 'no' to 'yes', reflecting that the new crime will impose enforcement costs on local agencies (likely county prosecutors).

TECHNICAL

Added a no-reimbursement provision under Article XIII B of the California Constitution, stating that no reimbursement is required because the act creates a new crime, which is exempt from state reimbursement requirements.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

Apr 8, 2025

Committee

Re-referred to Com. on JUD.

lower

Apr 7, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

lower

Apr 7, 2025

Committee

Referred to Com. on JUD.

lower

Feb 22, 2025

Lower · Passed

From printer. May be heard in committee March 24.

lower

Feb 21, 2025

Introduced

Introduced. To print.

lower

1 primary · 0 co-sponsors