By Yarbrough                                          H.B. No. 3545
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to business competition, economic development and
 1-3     prohibiting the sale or purchase of toner cartridges with
 1-4     restrictions on the recycling or remanufacturing.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter A, Chapter 15, Section 15.05, Business
 1-7     and Commerce Code, is amended to read as follows:
 1-8           Sec. 15.05.  Unlawful Practices
 1-9           (a)  Every contract, combination, or conspiracy in restraint
1-10     of trade or commerce is unlawful.
1-11           (b)  It is unlawful for any person to monopolize, attempt to
1-12     monopolize, or conspire to monopolize any part of trade or
1-13     commerce.
1-14           (c)  It is unlawful for any person to sell, lease, or
1-15     contract for the sale or lease of any goods, whether patented or
1-16     unpatented, for use, consumption, or resale or to fix a price for
1-17     such use, consumption, or resale or to discount from or rebate upon
1-18     such price, on the condition, agreement, or understanding that the
1-19     purchaser or lessee shall not use or deal in the goods of a
1-20     competitor or competitors of the seller or lessor, where the effect
1-21     of the condition, agreement, or understanding may be to lessen
 2-1     competition substantially in any line of trade or commerce.
 2-2           (d)  It is unlawful for any person to acquire, directly or
 2-3     indirectly, the whole or any part of the stock or other share
 2-4     capital or the assets of any other person or persons, where the
 2-5     effect of such acquisition may be to lessen competition
 2-6     substantially in any line of trade or commerce.  This subsection
 2-7     shall not be construed:
 2-8                 (1)  to prohibit the purchase of stock or other share
 2-9     capital of another person where the purchase is made solely for
2-10     investment and does not confer control of that person in a manner
2-11     that could substantially lessen competition;
2-12                 (2)  to prevent a corporation from forming subsidiary
2-13     or parent corporations for the purpose of conducting its
2-14     immediately lawful business, or any natural and legitimate branch
2-15     extensions of such business, or from owning and holding all or a
2-16     part of the stock or other share capital of a subsidiary, or
2-17     transferring all or part of its stock or other share capital to be
2-18     owned and held by a parent, where the effect of such a transaction
2-19     is not to lessen competition substantially;
2-20                 (3)  to affect or impair any right previously legally
2-21     acquired; or
2-22                 (4)  to apply to transactions duly consummated pursuant
2-23     to authority given by any statute of this state or of the United
2-24     States or pursuant to authority or approval given by any regulatory
2-25     agency of this state or of the United States under any
 3-1     constitutional or statutory provisions vesting the agency with such
 3-2     power.
 3-3           (e)  It is unlawful to purchase or sell a toner cartridge
 3-4     with restrictions on its resale, reuse or remanufacture.
 3-5           [(e)] (f)  It is unlawful for an employer and a labor union
 3-6     or other organization to agree or combine so that:
 3-7                 (1)  a person is denied the right to work for an
 3-8     employer because of membership or nonmembership in the labor union
 3-9     or other organization; or
3-10                 (2)  membership or nonmembership in the labor union or
3-11     other organization is made a condition of obtaining or keeping a
3-12     job with the employer.
3-13           [(f)] (g)  It is not unlawful for:
3-14                 (1)  employees to agree to quit their employment or to
3-15     refuse to deal with tangible personal property of their immediate
3-16     employer, unless their refusal to deal with tangible personal
3-17     property of their immediate employer is intended to induce or has
3-18     the effect of inducing that employer to refrain from buying or
3-19     otherwise acquiring tangible personal property from a person; or
3-20                 (2)  persons to agree to refer for employment a
3-21     migratory worker who works on seasonal crops if the referral is
3-22     made irrespective of whether or not the worker belongs to a labor
3-23     union or organization.
3-24           [(g)] (h)  Nothing in this section shall be construed to
3-25     prohibit activities that are exempt from the operation of the
 4-1     federal antitrust laws, 15 U.S.C.  Section 1 et seq., except that
 4-2     an exemption otherwise available under the McCarran-Ferguson Act
 4-3     (15 U.S.C. Sections 1011-1015) does not serve to exempt activities
 4-4     under this Act. Nothing in this section shall apply to actions
 4-5     required or affirmatively approved by any statute of this state or
 4-6     of the United States or by a regulatory agency of this state or of
 4-7     the United States duly acting under any constitutional or statutory
 4-8     authority vesting the agency with such power.
 4-9           [(h)] (i)  In any lawsuit alleging a contract, combination,
4-10     or conspiracy to fix prices, evidence of uniform prices alone shall
4-11     not be sufficient to establish a violation of Subsection (a) of
4-12     Section 15.05.
4-13           [(i)] (j)  In determining whether a restraint related to the
4-14     sale or delivery of professional services is reasonable, except in
4-15     cases involving price fixing, or other per se violations, the court
4-16     may consider, but shall not reach its decision solely on the basis
4-17     of, criteria which include:
4-18                 (1)  whether the activities involved maintain or
4-19     improve the quality of such services to benefit the public
4-20     interest;
4-21                 (2)  whether the activities involved limit or reduce
4-22     the cost of such services to benefit the public interest.  For
4-23     purposes of this subsection, the term "professional services" means
4-24     services performed by any licensed accountant, physician, or
4-25     professional engineer in connection with his or her professional
 5-1     employment or practice.
 5-2           SECTION 3.  This Act takes effect September 1, 1999.
 5-3           SECTION 4.  The importance of this legislation and the
 5-4     crowded condition of the calendars in both houses create an
 5-5     emergency and an imperative public necessity that the
 5-6     constitutional rule requiring bills to be read on three several
 5-7     days in each house be suspended, and this rule is hereby suspended.