By:  Harris                                           S.B. No. 1817
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to prohibiting the sale or purchase of toner cartridges
 1-2     with restrictions on the recycling or remanufacturing.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter A, Chapter 15, Section 15.05, Business
 1-5     and Commerce Code, is amended to read as follows:
 1-6           Se. 15.05.  Unlawful Practices   (a)  Every contract,
 1-7     combination, or conspiracy in restraint of trade or commerce is
 1-8     unlawful.
 1-9           (b)  It is unlawful for any person to monopolize, attempt to
1-10     monopolize, or conspire to monopolize any part of trade or
1-11     commerce.
1-12           (c)  It is unlawful for any person to sell, lease, or
1-13     contract for the sale or lease of any goods, whether patented or
1-14     unpatented, for use, consumption, or resale or to fix a price for
1-15     such use, consumption, or resale or to discount from or rebate upon
1-16     such price, on the condition, agreement, or understanding that the
1-17     purchaser or lessee shall not use or deal in the goods of a
1-18     competitor or competitors of the seller or lessor, where the effect
1-19     of the condition, agreement, or understanding may be to lessen
1-20     competition substantially in any line of trade or commerce.
1-21           (d)  It is unlawful for any person to acquire, directly or
1-22     indirectly, the whole or any part of the stock or other share
 2-1     capital or the assets of any other person or persons, where the
 2-2     effect of such acquisition may be to lessen competition
 2-3     substantially in any line of trade or commerce.  This subsection
 2-4     shall not be construed:
 2-5                 (1)  to prohibit the purchase of stock or other share
 2-6     capital of another person where the purchase is made solely for
 2-7     investment and does not confer control of that person in a manner
 2-8     that could substantially lessen competition;
 2-9                 (2)  to prevent a corporation from forming subsidiary
2-10     or parent corporations for the purpose of conducting its
2-11     immediately lawful business, or any natural and legitimate branch
2-12     extensions of such business, or from owning and holding all or a
2-13     part of the stock or other share capital of a subsidiary, or
2-14     transferring all or part of its stock or other share capital to be
2-15     owned and held by a parent, where the effect of such a transaction
2-16     is not to lessen competition substantially;
2-17                 (3)  to affect or impair any right previously legally
2-18     acquired; or
2-19                 (4)  to apply to transactions duly consummated pursuant
2-20     to authority given by any statute of this state or of the United
2-21     States or pursuant to authority or approval given by any regulatory
2-22     agency of this state or of the United States under any
2-23     constitutional or statutory provisions vesting the agency with such
2-24     power.
2-25           (e)  It is unlawful to purchase or sell a toner cartridge
2-26     with restrictions on its resale, reuse or remanufacture.
 3-1           [(e)] (f)  It is unlawful for an employer and a labor union or
 3-2     other organization to agree or combine so that:
 3-3                 (1)  a person is denied the right to work for an
 3-4     employer because of membership or nonmembership in the labor union
 3-5     or other organization; or
 3-6                 (2)  membership or nonmembership in the labor union or
 3-7     other organization is made a condition of obtaining or keeping a
 3-8     job with the employer.
 3-9           [(f)] (g)  It is not unlawful for:
3-10                 (1)  employees to agree to quit their employment or to
3-11     refuse to deal with tangible personal property of their immediate
3-12     employer, unless their refusal to deal with tangible personal
3-13     property of their immediate employer is intended to induce or has
3-14     the effect of inducing that employer to refrain from buying or
3-15     otherwise acquiring tangible personal property from a person; or
3-16                 (2)  persons to agree to refer for employment a
3-17     migratory worker who works on seasonal crops if the referral is
3-18     made irrespective of whether or not the worker belongs to a labor
3-19     union or organization.
3-20           [(g)] (h)  Nothing in this section shall be construed to
3-21     prohibit activities that are exempt from the operation of the
3-22     federal antitrust laws, 15 U.S.C. Section 1 et seq., except that an
3-23     exemption otherwise available under the McCarran-Ferguson Act (15
3-24     U.S.C. Sections 1011-1015) does not serve to exempt activities
3-25     under this Act. Nothing in this section shall apply to actions
3-26     required or affirmatively approved by any statute of this state or
 4-1     of the United States or by a regulatory agency of this state or of
 4-2     the United States duly acting under any constitutional or statutory
 4-3     authority vesting the agency with such power.
 4-4           [(h)] (i)  In any lawsuit alleging a contract, combination, or
 4-5     conspiracy to fix prices, evidence of uniform prices alone shall
 4-6     not be sufficient to establish a violation of Subsection (a) or
 4-7     Section 15.05.
 4-8           [(i)] (j)  In determining whether a restraint related to the
 4-9     sale of delivery of professional services is reasonable, except in
4-10     cases involving price fixing, or other per se violations, the court
4-11     may consider, but shall not reach its decision solely on the basis
4-12     of criteria which include:
4-13                 (1) whether the activities involved maintain or improve
4-14     the quality of such services to benefit the public interest;
4-15                 (2) whether the activities involved limit or reduce the
4-16     cost of such services to benefit the public interest.  For purposes
4-17     of this subsection, the term "professional services" means services
4-18     performed by any licensed accountant, physician, or professional
4-19     engineer in connection with his or her professional employment or
4-20     practice.
4-21           SECTION 2.  This Act takes effect September 1, 1999.
4-22           SECTION 3.  The importance of this legislation and the
4-23     crowded condition of the calendars in both houses create an
4-24     emergency and an imperative public necessity that the
4-25     constitutional rule requiring bills to be read on three several
4-26     days in each house be suspended, and this rule is hereby suspended.