Sen. Melissa Hurtado (D-Bakersfield)

On Tuesday, state Senator Melissa Hurtado (D-Bakersfield) and California Attorney General Rob Bonta unveiled Senate Bill 763, which they say would more effectively deter corporations from restraining trade, fixing prices and reducing competition.

According to a news release from the attorney general’s office, such actions can raise prices and harm workers, businesses and consumers.

“This is about power — the power of corporations, market manipulators, and bad actors who rig prices, suppress wages, and tilt the playing field in their favor,” Hurtado said in a statement. “For too long, Californians have shouldered the burden of an economy where those who break the rules profit while honest businesses and working families struggle. That ends now. SB 763 ensures that violating antitrust laws comes with real consequences, not just a slap on the wrist.”

The proposal would increase criminal penalties and add civil penalties for violations of California’s Cartwright Act, enacted in 1907 as part of state and federal legislation aiming to stem the power of monopolies and cartels.

Prior to the law’s passage, cartels openly operated in California industries including lumber, baking, ice production and electrical power, conducting price fixing and other harmful actions, according to the California Lawyers Association website.

In 1890, the U.S. Congress passed the first antitrust law, the Sherman Act, which prohibits unfair monopolies and protects competition.

Specifically, SB 763 would increase the criminal fines for corporate violators from $1 million to $100 million per violation and increase fines for individuals from $250,000 to $1 million per violation.

It would also increase the term of imprisonment for a felony violation to two, three, or five years. The term for such violations is currently one, two or three years.

The bill would add civil penalties of up to $1 million per violation that courts can impose based on factors including the nature, seriousness and persistence of the misconduct.

Bonta said that too many wealthy corporations see penalties for breaking the law as a simple business cost and that SB 763 would sharpen the teeth of a century-old law by increasing penalties for those looking to illegally profit at the cost of workers, consumers and honest businesses.

 “As the fifth largest economy in the world, and home to some of the wealthiest corporations, California has a responsibility to fight for a fair and competitive marketplace, especially amid the unprecedented wave of corporate mergers and market consolidation that we are seeing today. I thank Senator Hurtado for introducing this bill to help ensure we have the appropriate tools to protect a vibrant and just 21st century economy,” Bonta said.