Business regulation: radius restrictions.

(1) Existing law makes every trust, subject to specified exemptions, unlawful, against public policy, and void. A "trust" is defined for these purposes as a combination of capital, skill, or acts by 2 or more persons for certain designated purposes. Under existing law, these purposes include, among others, creating or carrying out restrictions in trade or commerce or preventing competition in manufacturing, making, transportation, sale, or purchase of merchandise, produce, or any commodity. The act also makes it unlawful for any person to lease or make a sale or contract for the sale of products on the condition, agreement, or understanding that the lessee or purchaser not use or deal in the products or services of a competitor where the effect is to substantially lessen competition or tend to create a monopoly in any line of commerce. A violation of the act is punishable as a crime. This bill would expand the definition of "trust" by including as one of those purposes, and would also make it unlawful under the act to, include in any outlet center lease for a retail establishment between a lessor and lessee, a radius restriction prohibiting the lessee from opening or operating the same retail establishment in a separate outlet center located 10 miles or more in distance from the leased retail establishment. Because the bill would add to the activities prohibited by the act, the violation of which would be punishable as a crime, the bill would impose a state-mandated local program. (2) 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.