AB 1776: Cartwright Act: trust.

Existing law, known as the Cartwright Act, makes every trust unlawful, against public policy, and void, subject to specified exemptions. A trust is defined for these purposes as a combination of capital, skill, or acts by 2 or more persons for certain prohibited purposes. A violation of the act is punishable as a crime.

This bill would, instead, define a trust as a combination of capital, skill, or acts by one or more persons. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.

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.