S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6748--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2023
                                ___________
 
 Introduced by Sens. GIANARIS, SALAZAR, HOYLMAN-SIGAL, JACKSON, KAVANAGH,
   MAY,  SEPULVEDA -- read twice and ordered printed, and when printed to
   be committed to the Committee on Consumer Protection -- recommitted to
   the Committee on Consumer Protection in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the  general business law, in relation to actions or
   practices  that  establish  or  maintain  a  monopoly,  monopsony   or
   restraint  of  trade,  and  in  relation to authorizing a class action
   lawsuit in the state anti-trust law
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act shall be known and may be cited as the "Twenty-
 First Century Anti-Trust Act".
   § 2. Legislative findings. The legislature hereby finds  and  declares
 New  York's  great concern with the growing accumulation of power in the
 hands of dominant corporations that harms our marketplace, our  democra-
 cy, and that undermines the power of workers, consumers, and small busi-
 nesses.  It  is time to update, expand, and clarify our laws, consistent
 with the purposes of the  anti-trust  reforms  of  the  early  Twentieth
 Century,  to  police abuses of power by dominant firms.  The legislature
 further finds and declares that unilateral actions which seek to  create
 a  monopoly  or  monopsony  are as harmful as contracts or agreements of
 multiple parties to do the same and should be  treated  similarly  under
 the  law.  Firms  with  monopoly  or monopsony power are contrary to the
 public interest. The legislature further finds and  declares  that  laws
 governing  multi-firm  conduct  should  be  updated, consistent with the
 purposes of anti-trust law, to adequately address  abuses  of  power  by
 dominant  firms  embodied in coercive vertical restraints on small busi-
 nesses, workers,  and  consumers.  The  legislature  further  finds  and
 declares  that  effective  enforcement against unfair competition, espe-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02939-03-4
              

 S. 6748--A                          2
 
 cially on the part of dominant firms, has been impeded  by  courts,  for
 example,  applying  narrow definitions of monopolies and monopolization,
 limiting the scope of unilateral conduct, making it  excessively  diffi-
 cult  to  challenge  unfair competition and unreasonably heightening the
 legal standards that plaintiffs and government enforcers  must  overcome
 to establish violations of those laws. The legislature further finds and
 declares  that  one of the purposes of the state's anti-trust laws is to
 ensure that our labor markets are open and fair. The legislature further
 finds and declares that anti-competitive practices harm great numbers of
 citizens and therefore must ensure that those harmed  by  monopolies  or
 monopsonies may seek redress through private enforcement.
   § 3. Section 340 of the general business law, as amended by chapter 12
 of the laws of 1935, subdivision 1 as amended by chapter 893 of the laws
 of  1957,  subdivision  2 as amended by chapter 805 of the laws of 1984,
 subdivisions 3 and 4 as renumbered by chapter 502 of the laws  of  1948,
 subdivision 5 as amended by chapter 333 of the laws of 1975 and subdivi-
 sion  6 as amended by chapter 31 of the laws of 1999, is amended to read
 as follows:
   §  340.  Contracts  or  agreements  for  monopoly,  MONOPSONY,  or  in
 restraint  of  trade  illegal  and  void.  1. Every contract, agreement,
 arrangement or combination whereby
   A monopoly OR MONOPSONY in the  conduct  of  any  business,  trade  or
 commerce or in the furnishing of any service in this state, is or may be
 established or maintained, or whereby
   Competition or the free exercise of any activity in the conduct of any
 business,  trade or commerce or in the furnishing of any service in this
 state is or may be restrained or whereby
   For the purpose of establishing  or  maintaining  any  such  monopoly,
 MONOPSONY,  or  unlawfully  interfering  with  the  free exercise of any
 activity in the conduct of any business, trade or  commerce  or  in  the
 furnishing  of any service in this state any business, trade or commerce
 or the furnishing of any service is or  may  be  restrained,  is  hereby
 declared to be against public policy, illegal and void.
   2. (A) IT SHALL BE UNLAWFUL FOR ANY PERSON OR PERSONS TO MONOPOLIZE OR
 MONOPSONIZE,  OR  ATTEMPT  TO  MONOPOLIZE  OR MONOPSONIZE, OR COMBINE OR
 CONSPIRE WITH ANY OTHER PERSON OR PERSONS TO MONOPOLIZE  OR  MONOPSONIZE
 ANY BUSINESS, TRADE OR COMMERCE OR THE FURNISHING OF ANY SERVICE IN THIS
 STATE.
   (B)  IT  SHALL  BE  UNLAWFUL FOR ANY PERSON OR PERSONS WITH A DOMINANT
 POSITION IN THE CONDUCT OF ANY BUSINESS, TRADE OR COMMERCE, IN ANY LABOR
 MARKET, OR IN THE FURNISHING OF ANY SERVICE IN THIS STATE TO ABUSE  THAT
 DOMINANT  POSITION.    THIS  PARAGRAPH  SHALL  NOT  APPLY TO A PERSON OR
 PERSONS THAT ARE INDEPENDENTLY OWNED AND OPERATED AND EMPLOY ONE HUNDRED
 OR FEWER PERSONS.
   (I) IN ANY ACTION BROUGHT UNDER THIS PARAGRAPH,  A  PERSON'S  DOMINANT
 POSITION  MAY BE ESTABLISHED BY DIRECT EVIDENCE, INDIRECT EVIDENCE, OR A
 COMBINATION OF THE TWO.
   (1) EXAMPLES OF DIRECT EVIDENCE  INCLUDE,  BUT  ARE  NOT  LIMITED  TO,
 REDUCTION  IN  OUTPUT OR IN QUALITY OF GOODS OR SERVICES, THE IMPOSITION
 OF SUPRACOMPETITIVE PRICES, OR THE ABILITY TO FORCE, INDUCE,  OR  OTHER-
 WISE  COERCE  A  SUPPLIER  TO OFFER A LOWER PRICE, DISCOUNT, ADVERTISING
 ALLOWANCE, OR OTHER SERVICE THAN WHAT THE  SUPPLIER  OFFERS  OTHERS.  IN
 LABOR  MARKETS,  EXAMPLES  OF  DIRECT  EVIDENCE  OF  A DOMINANT POSITION
 INCLUDE, BUT ARE NOT LIMITED TO, THE IMPOSITION OF SUBCOMPETITIVE  WAGES
 OR WORKING CONDITIONS; THE REPEATED VIOLATION OF LAWS PROTECTING WORKERS
 SUCH  AS LABOR LAWS, WAGE-AND-HOUR LAWS, AND WORKPLACE HEALTH AND SAFETY
 S. 6748--A                          3
 
 LAWS; OR THE INTERFERENCE WITH, RESTRAINT OF, OR COERCION OF WORKERS  IN
 THE  EXERCISE  OF THEIR FULL FREEDOM OF ASSOCIATION TO OBTAIN ACCEPTABLE
 TERMS AND CONDITIONS OF EMPLOYMENT, INCLUDING THROUGH SELF-ORGANIZATION,
 DESIGNATION  OF  WORKPLACE  REPRESENTATIVES, AND ENGAGEMENT IN CONCERTED
 ACTIVITIES FOR THE PURPOSES OF COLLECTIVE BARGAINING OR OTHER MUTUAL AID
 OR PROTECTION. DIRECT EVIDENCE OF  DOMINANT  POSITION  INCLUDES  CONDUCT
 THAT  IS  CARRIED  OUT  DIRECTLY OR INDIRECTLY THROUGH ANOTHER ENTITY OR
 PERSON SUCH AS AN INDEPENDENT CONTRACTOR OR OTHER INTERMEDIARY.
   (2) A PERSON'S DOMINANT POSITION MAY ALSO BE ESTABLISHED  BY  INDIRECT
 EVIDENCE  SUCH  AS THE PERSON'S SHARE OF A RELEVANT MARKET. A PERSON WHO
 HAS A SHARE OF FORTY PERCENT OR GREATER OF A RELEVANT MARKET AS A SELLER
 SHALL BE PRESUMED TO HAVE A DOMINANT POSITION IN THAT MARKET UNDER  THIS
 PARAGRAPH.  A  PERSON  WHO HAS A SHARE OF THIRTY PERCENT OR GREATER OF A
 RELEVANT MARKET AS A BUYER SHALL BE PRESUMED TO HAVE A DOMINANT POSITION
 IN THAT MARKET UNDER THIS PARAGRAPH. WHEN DETERMINING A RELEVANT MARKET,
 COURTS SHALL EXAMINE FACTORS INCLUDING, BUT NOT LIMITED TO, INDUSTRY  OR
 PUBLIC RECOGNITION OF THE MARKET AS SEPARATE AND DISTINCT, THE PRODUCT'S
 PECULIAR   CHARACTERISTICS   AND  USES,  UNIQUE  PROTECTION  FACILITIES,
 DISTINCT CUSTOMERS, DISTINCT PRICES, SENSITIVITY TO PRICE  CHANGES,  AND
 SPECIALIZED VENDORS.
   (3)  IF DIRECT EVIDENCE IS SUFFICIENT TO DEMONSTRATE THAT A PERSON HAS
 A DOMINANT POSITION OR HAS ABUSED SUCH A  DOMINANT  POSITION,  NO  COURT
 SHALL  REQUIRE  DEFINITION OF A RELEVANT MARKET IN ORDER TO EVALUATE THE
 EVIDENCE, FIND LIABILITY, OR FIND THAT A CLAIM  HAS  BEEN  STATED  UNDER
 THIS PARAGRAPH.
   (II)  IN  ANY ACTION BROUGHT UNDER THIS PARAGRAPH, ABUSE OF A DOMINANT
 POSITION MAY INCLUDE, BUT IS NOT LIMITED TO, CONDUCT THAT TENDS TO FORE-
 CLOSE OR LIMIT THE ABILITY OR INCENTIVE OF ONE OR MORE ACTUAL OR  POTEN-
 TIAL  COMPETITORS  TO COMPETE, SUCH AS LEVERAGING A DOMINANT POSITION IN
 ONE MARKET TO LIMIT COMPETITION IN A SEPARATE MARKET; REFUSING  TO  DEAL
 WITH ANOTHER PERSON WITH THE EFFECT OF UNNECESSARILY EXCLUDING OR HANDI-
 CAPPING  ACTUAL  OR POTENTIAL COMPETITORS; COERCING THE PURCHASER OF ONE
 PRODUCT, SERVICE, OR CONTRACT INTO PURCHASING OR  OBTAINING  A  SEPARATE
 AND  DISTINCT PRODUCT, SERVICE, OR CONTRACT; OR ENGAGING IN, OR COERCING
 A THIRD PARTY INTO, AN EXCLUSIVE AGREEMENT OR CONTRACT  THAT  SERVES  TO
 FORECLOSE  OR  INCREASE  COSTS FOR A COMPETITOR. IN LABOR MARKETS, ABUSE
 MAY INCLUDE, BUT IS NOT LIMITED TO, IMPOSING RESTRAINTS, DIRECT OR INDI-
 RECT, ON THE MOBILITY OF WORKERS BETWEEN EMPLOYERS, THE ABILITY OF WORK-
 ERS TO SEEK EMPLOYMENT FROM MULTIPLE EMPLOYERS BY RESTRICTING THE  FREE-
 DOM  OF WORKERS AND INDEPENDENT CONTRACTORS TO DISCLOSE WAGE AND BENEFIT
 INFORMATION, OR WAGE DISCRIMINATION BASED ON ANY UNDISCLOSED  OR  HIDDEN
 CONSIDERATIONS.
   (C) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
 FOLLOWING RESTRAINTS ARE PRESUMED TO BE ILLEGAL WHEN ENGAGED IN BY DOMI-
 NANT FIRMS:
   (1)  ANY RESTRAINT THAT REQUIRES ANOTHER PERSON TO DEAL EXCLUSIVELY OR
 PRIMARILY WITH THE FIRM IMPOSING THE RESTRAINT OR ANOTHER PERSON  SPECI-
 FIED  BY  THAT  FIRM  OR  ANY RESTRAINT THAT HAS THE NECESSARY EFFECT OF
 REQUIRING ANOTHER PERSON TO DEAL EXCLUSIVELY OR PRIMARILY WITH THE  FIRM
 IMPOSING THE RESTRAINT OR ANOTHER PERSON SPECIFIED BY THAT FIRM;
   (2)  ANY RESTRAINT THAT CONDITIONS THE SALE OR PURCHASE OF ANY PRODUCT
 OR SERVICES ON AN AGREEMENT TO  SELL  OR  PURCHASE  ANOTHER  PRODUCT  OR
 SERVICE;
   (3)  ANY  RESTRAINT  ON  A PERSON'S ABILITY TO ENGAGE IN A PROFESSION,
 TRADE, OR BUSINESS OF ANY KIND, INCLUDING ANY RESTRAINT  ON  A  PERSON'S
 ABILITY TO EMPLOY ANOTHER PERSON;
 S. 6748--A                          4
 
   (4) ANY RESTRAINT ON THE PRICES OR WAGES OFFERED BY ANOTHER FIRM;
   (5)  ANY  RESTRAINT  ON  ANOTHER  FIRM'S RIGHT TO INDEPENDENTLY DECIDE
 WHETHER TO RECOGNIZE A UNION OF ITS EMPLOYEES OR TO OTHERWISE  AGREE  TO
 NEGOTIATE  WITH  ITS EMPLOYEES COLLECTIVELY OVER TERMS AND CONDITIONS OF
 EMPLOYMENT;
   (6) ANY RESTRAINT  THAT  THE  ATTORNEY  GENERAL,  THROUGH  RULEMAKING,
 DETERMINES  POSES  A SUBSTANTIAL RISK OF HARMING COMPETITION THAT IS NOT
 ALREADY PRESUMED ILLEGAL;
   (7) ANY ADDITIONAL RESTRAINT THAT  THE  ATTORNEY  GENERAL  DETERMINES,
 THROUGH RULEMAKING, GENERALLY SERVES NO LEGITIMATE BUSINESS PURPOSE THAT
 CANNOT BE ACHIEVED IN SOME LESS RESTRICTIVE WAY.
   (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT APPLY IF THE DEFEND-
 ANT ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE, THAT THE PRO-COMPETI-
 TIVE  BENEFITS OF THE CHALLENGED CONDUCT (1) ARE ACHIEVABLE ONLY THROUGH
 THAT CONDUCT AND (2) OUTWEIGH THAT CONDUCT'S HARM  TO  COMPETITION.  THE
 HARM TO COMPETITION IN ONE MARKET FROM THE CHALLENGED CONDUCT MAY NOT BE
 OFFSET  BY  PURPORTED  BENEFITS  IN A SEPARATE MARKET; AND THE HARM TO A
 PERSON OR PERSONS FROM THE CHALLENGED  CONDUCT  MAY  NOT  BE  OFFSET  BY
 PURPORTED BENEFITS TO ANOTHER PERSON OR PERSONS.
   (D) (I) THE ATTORNEY GENERAL IS HEREBY EMPOWERED TO ADOPT, PROMULGATE,
 AMEND,  AND  REPEAL  RULES,  AS SUCH TERM IS DEFINED IN PARAGRAPH (A) OF
 SUBDIVISION TWO OF SECTION ONE HUNDRED TWO OF THE  STATE  ADMINISTRATIVE
 PROCEDURE ACT, TO CARRY OUT THE PURPOSES OF PARAGRAPH (B) OF THIS SUBDI-
 VISION,  INCLUDING  THOSE  CONSIDERATIONS  SPECIFIED IN THE FINDINGS AND
 DECLARATIONS OF THE LEGISLATURE FOR THIS ACT.
   (II) BEFORE ANY SUCH RULE SHALL TAKE EFFECT, AT  SUCH  TIME  THAT  THE
 ATTORNEY  GENERAL  IS  PREPARED TO FILE A NOTICE OF ADOPTION PURSUANT TO
 SUBDIVISION FIVE OF SECTION TWO HUNDRED TWO OF THE STATE  ADMINISTRATIVE
 PROCEDURE ACT, THE ATTORNEY GENERAL SHALL TRANSMIT A COPY OF THE RULE IN
 ITS  FINAL FORM TO THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER
 OF THE ASSEMBLY AND, IN ADDITION, SHALL PROVIDE ANY RELEVANT INFORMATION
 REGARDING THE NEED FOR SUCH RULE. SUCH PROPOSED RULE, OR PROPOSED REPEAL
 OF A RULE, IS SUBJECT TO THE DENIAL BY BOTH HOUSES  OF  THE  LEGISLATURE
 AND  SHALL  TAKE THE FORM OF A RESOLUTION. EACH HOUSE OF THE LEGISLATURE
 SHALL HAVE SIXTY DAYS FOLLOWING THE TRANSMISSION OF SUCH RULE  TO  ISSUE
 DENIAL  BY RESOLUTION OR TAKE NO ACTION. SUCH RULE SHALL NOT TAKE EFFECT
 IF BOTH HOUSES PASS A RESOLUTION DENYING SUCH PROPOSED RULE  WITHIN  THE
 TIME PRESCRIBED BY THIS SUBPARAGRAPH.
   (III) THE ATTORNEY GENERAL SHALL ISSUE GUIDANCE ON HOW IT WILL ACHIEVE
 THE PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION.  THE ATTORNEY GENERAL
 MAY  ISSUE OTHER GUIDANCE WITH RESPECT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION.
   (IV) NOTHING IN THIS SECTION SHALL BE DEEMED TO DIMINISH THE JURISDIC-
 TION OF THE PUBLIC SERVICE COMMISSION.
   3. Subject to the exceptions hereinafter provided in this section, the
 provisions of this article shall apply to  licensed  insurers,  licensed
 insurance  agents,  licensed  insurance  brokers,  licensed  independent
 adjusters and other persons and organizations subject to the  provisions
 of the insurance law, to the extent not regulated by provisions of arti-
 cle  twenty-three of the insurance law; and further provided, that noth-
 ing in this section shall apply  to  the  marine  insurances,  including
 marine  protection  and  indemnity  insurance  and  marine  reinsurance,
 exempted from the operation of article  twenty-three  of  the  insurance
 law.
   [3.]  4. The provisions of this article shall not apply to cooperative
 associations, corporate or otherwise, of farmers, gardeners,  or  dairy-
 S. 6748--A                          5
 
 men,  including  live stock farmers and fruit growers, nor to contracts,
 agreements or arrangements made by such associations, nor to  bona  fide
 labor  unions,  NOR  TO THE CREATION, PRODUCTION, AND DISSEMINATION OF A
 SINGLE  EXPRESSIVE  WORK  THAT IS COPYRIGHTED, INCLUDING BUT NOT LIMITED
 TO, A STREAMING SERIES, TELEVISION PROGRAMS AND/OR MOTION PICTURES.
   [4.] 5. The labor of human beings shall not be deemed or held to be  a
 commodity  or article of commerce as such terms are used in this section
 and nothing herein contained shall be deemed to prohibit or restrict the
 right of workingmen, INCLUDING EMPLOYEES AND INDEPENDENT CONTRACTORS, to
 combine in unions, organizations and associations, not organized for the
 purpose of profit, TO ESTABLISH  OR  MAINTAIN  UNION  APPRENTICESHIP  OR
 TRAINING  PROGRAMS THAT MAY LEAD TO ANY GOVERNMENT-ISSUED TRADE LICENSE,
 OR TO BARGAIN COLLECTIVELY CONCERNING THEIR  WAGES  AND  THE  TERMS  AND
 CONDITIONS  OF THEIR EMPLOYMENT. NOTHING IN THIS SECTION SHALL BE DEEMED
 TO PREVENT OR CREATE LIABILITY WITH RESPECT TO  ANY  ACTIONS  TO  COMPLY
 WITH  ARTICLE  EIGHT  OR  NINE  OF THE LABOR LAW. A BONA FIDE COLLECTIVE
 BARGAINING AGREEMENT, PROJECT LABOR AGREEMENT  OR  ANY  OTHER  AGREEMENT
 LAWFUL  UNDER  29  U.S.C. 158(F), AS AMENDED, OR ANY TERM THEREIN, SHALL
 NOT BE CONSIDERED EVIDENCE  OF  A  VIOLATION  OR  DOMINANCE  UNDER  THIS
 SECTION.    PROJECT  LABOR AGREEMENT SHALL HAVE THE MEANING SPECIFIED IN
 SECTION  TWO HUNDRED TWENTY-TWO OF THE LABOR LAW.
   [5.] 6. An action to recover damages caused by  a  violation  of  this
 section  must  be  commenced within four years after the cause of action
 has accrued. The state, or any political subdivision or public authority
 of the state, or any person who shall sustain damages by reason  of  any
 violation  of  this section, shall recover three-fold the actual damages
 sustained thereby, as well as costs not exceeding ten thousand  dollars,
 and  reasonable  attorneys'  fees.  At or before the commencement of any
 civil action by a party other than the attorney-general for a  violation
 of this section, notice thereof shall be served upon the attorney-gener-
 al.  Where  the  aggrieved  party  is  a political subdivision or public
 authority of the state, notice of intention to commence an action  under
 this  section must be served upon the attorney-general at least ten days
 prior to the commencement of such action. This section shall  not  apply
 to any action commenced prior to the effective date of this act.
   [6.]  7.  In  any  action  pursuant to this section, the fact that the
 state, or any political subdivision or public authority of the state, or
 any person who has sustained damages by  reason  of  violation  of  this
 section  has  not  dealt  directly  with  the defendant shall not bar or
 otherwise limit recovery; provided, however, that in any action in which
 claims are asserted against a defendant  by  both  direct  and  indirect
 purchasers,  the court shall take all steps necessary to avoid duplicate
 liability, including but not limited to the transfer  and  consolidation
 of  all  related  actions.  In  actions  where  both direct and indirect
 purchasers are involved, a defendant shall be entitled  to  prove  as  a
 partial  or  complete  defense  to  a claim for damages that the illegal
 overcharge has been passed on to others who are themselves  entitled  to
 recover so as to avoid duplication of recovery of damages.
   8.    ANY  PERSON  HARMED  BY THIS SECTION, WHETHER HARMED DIRECTLY OR
 INDIRECTLY BY THE PURPORTED VIOLATION, SHALL BE ENTITLED TO BRING SUIT.
   9. ANY DAMAGES RECOVERABLE PURSUANT TO THIS SECTION MAY  BE  RECOVERED
 IN  ANY  ACTION  WHICH  A  COURT  MAY AUTHORIZE TO BE BROUGHT AS A CLASS
 ACTION PURSUANT TO ARTICLE NINE OF THE CIVIL PRACTICE LAW AND RULES.
   10. AN ARRANGEMENT, AS THIS TERM IS USED IN  THIS  ARTICLE,  INCLUDES,
 BUT IS NOT LIMITED TO, A CONTRACT, COMBINATION, AGREEMENT OR CONSPIRACY.
 S. 6748--A                          6
 
   11.  (A) ANY PERSON CONDUCTING BUSINESS IN THE STATE WHICH IS REQUIRED
 TO FILE THE NOTIFICATION AND REPORT FORM FOR CERTAIN MERGERS AND  ACQUI-
 SITIONS PURSUANT TO THE HART-SCOTT-RODINO  ANTITRUST IMPROVEMENTS ACT OF
 1976, 15 U.S.C. S. 18A (A), SHALL PROVIDE THE SAME NOTICE AND DOCUMENTA-
 TION  IN  ITS  ENTIRETY  TO  THE  ATTORNEY GENERAL AT THE SAME TIME THAT
 NOTICE IS FILED WITH THE FEDERAL  TRADE  COMMISSION  AND  THE  ASSISTANT
 ATTORNEY  GENERAL  IN CHARGE OF THE ANTITRUST DIVISION OF THE DEPARTMENT
 OF JUSTICE.
   (B)   THE FOLLOWING  CLASSES  OF  TRANSACTIONS  ARE  EXEMPT  FROM  THE
 REQUIREMENTS OF THIS SECTION:
   (I) ACQUISITIONS OF GOODS OR REALTY TRANSFERRED IN THE ORDINARY COURSE
 OF BUSINESS;
   (II)  THE  CREATION, PRODUCTION, AND DISSEMINATION OF A SINGLE EXPRES-
 SIVE WORK THAT IS COPYRIGHTED, INCLUDING BUT NOT LIMITED TO, A STREAMING
 SERIES, TELEVISION PROGRAMS AND/OR MOTION PICTURES;
   (III) ACQUISITIONS OF BONDS, MORTGAGES, DEEDS OF TRUST, OR OTHER OBLI-
 GATIONS WHICH ARE NOT VOTING SECURITIES;
   (IV) TRANSFERS TO OR FROM A FEDERAL AGENCY OR  A  STATE  OR  POLITICAL
 SUBDIVISION THEREOF;
   (V)  TRANSACTIONS  SPECIFICALLY  EXEMPTED  FROM THE PROVISIONS OF THIS
 ARTICLE;
   (VI) TRANSACTIONS BY, BETWEEN, OR AMONG MANUFACTURING,  IMPORTING,  OR
 WHOLESALE  BUSINESSES  THAT ARE DIRECTLY REGULATED BY THE NEW YORK STATE
 LIQUOR AUTHORITY; AND
   (VII) SUCH OTHER ACQUISITIONS, TRANSFERS, OR TRANSACTIONS, AS  MAY  BE
 EXEMPTED UNDER PARAGRAPH (F) OF THIS SUBDIVISION HEREUNDER.
   (C)  ANY  INFORMATION  OR DOCUMENTARY MATERIAL FILED WITH THE ATTORNEY
 GENERAL PURSUANT TO THIS SUBDIVISION SHALL  BE  EXEMPT  FROM  DISCLOSURE
 UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW, AND NO SUCH INFORMATION OR
 DOCUMENTARY  MATERIAL  MAY  BE MADE PUBLIC, EXCEPT AS MAY BE RELEVANT TO
 ANY ADMINISTRATIVE OR JUDICIAL ACTION OR PROCEEDING.
   (D) ANY PERSON, OR ANY OFFICER,  DIRECTOR,  OR  PARTNER  THEREOF,  WHO
 FAILS  TO  COMPLY WITH ANY PROVISION OF THIS SUBDIVISION SHALL BE LIABLE
 TO THE STATE FOR A CIVIL PENALTY OF NOT MORE THAN TEN  THOUSAND  DOLLARS
 FOR  EACH  DAY DURING WHICH SUCH PERSON IS IN VIOLATION OF THIS SECTION.
 SUCH PENALTY MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE  ATTORNEY
 GENERAL.
   (E)  IN CONSIDERING ANY TRANSACTION UNDER THIS SUBDIVISION, THE ATTOR-
 NEY GENERAL SHALL CONSIDER SUCH TRANSACTION'S EFFECTS ON LABOR  MARKETS,
 INCLUDING  BUT  NOT LIMITED TO EFFECTS ON WORKERS' COUNTERVAILING LEVER-
 AGE, BY ESTABLISHING A PROCESS FOR AFFECTED WORKERS  OR  REPRESENTATIVES
 DESIGNATED  BY  AFFECTED  WORKERS TO MEANINGFULLY COMMENT ON SUCH TRANS-
 ACTIONS WITHIN TEN DAYS FOLLOWING THE FILING OF THE TRANSACTING PARTIES'
 NOTICE AND DOCUMENTATION OF THEIR INTENDED TRANSACTION PURSUANT TO PARA-
 GRAPH (A) OF SUBDIVISION ELEVEN OF THIS SECTION.  THE  ATTORNEY  GENERAL
 SHALL ESTABLISH THIS NEW PROCESS WITHIN NINETY DAYS FOLLOWING THE EFFEC-
 TIVE  DATE  OF  THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-FOUR THAT
 AMENDED THIS SECTION.
   (F) THE ATTORNEY GENERAL IS HEREBY EMPOWERED TO:
   (I) DEFINE THE TERMS USED IN THIS SUBDIVISION;
   (II) EXEMPT, FROM THE REQUIREMENTS OF  THIS  SUBDIVISION,  CLASSES  OF
 PERSONS,  ACQUISITIONS,  TRANSFERS, OR TRANSACTIONS WHICH ARE NOT LIKELY
 TO VIOLATE THE PROVISIONS OF THIS ARTICLE; AND
   (III) ADOPT, PROMULGATE, AMEND, AND  RESCIND  OTHER  RULES  AND  REGU-
 LATIONS TO CARRY OUT THE PURPOSES OF THIS SUBDIVISION.
 S. 6748--A                          7
 
   §  4.  Section  341 of the general business law, as amended by chapter
 333 of the laws of 1975, is amended to read as follows:
   §  341.  Penalty. Every person or corporation, or any officer or agent
 thereof, who shall [make or attempt to  make  or  enter  into  any  such
 contract, agreement, arrangement or combination or who within this state
 shall]  do OR ATTEMPT TO DO, WITHIN THIS STATE, any act [pursuant there-
 to] DECLARED UNLAWFUL UNDER SUBDIVISION ONE AND PARAGRAPH (A) OF  SUBDI-
 VISION TWO OF SECTION THREE HUNDRED FORTY OF THIS ARTICLE, or in, toward
 or for the consummation thereof[, wherever the same may have been made],
 is guilty of a class [E] D felony, and on conviction thereof shall, if a
 natural  person,  be punished by a fine not exceeding one [hundred thou-
 sand] MILLION dollars, or by  imprisonment  for  not  longer  than  four
 years, or by both such fine and imprisonment; and if a corporation, by a
 fine  of  not  exceeding  one  HUNDRED million dollars. An indictment or
 information based on a violation  of  any  of  the  provisions  of  this
 section must be found within [three] FIVE years after its commission. No
 criminal  proceeding barred by prior limitation shall be revived by this
 act.
   § 5. Section 342-a of the general business law, as amended by  chapter
 275 of the laws of 1962, is amended to read as follows:
   § 342-a. Recovery of civil penalty by attorney-general. In lieu of any
 penalty  otherwise  prescribed  for  a  violation of a provision of this
 article and in addition to an action pursuant to section  three  hundred
 forty-two  of  this article, the attorney-general may bring an action in
 the name and in behalf of the people of the state  against  any  person,
 trustee,  director,  manager or other officer or agent of a corporation,
 or against a corporation, foreign or domestic, to recover a  penalty  in
 the sum specified in section three hundred forty-one of this article for
 the  doing  in  this state of any act [herein] declared to be illegal IN
 THIS ARTICLE, or any act in, toward or for the making or consummation of
 any contract, agreement, arrangement or combination [herein]  prohibited
 BY  THIS  ARTICLE, wherever the same may have been made. The action must
 be brought within [three] FIVE years after the  commission  of  the  act
 upon which it is based.
   §  6. Section 342-b of the general business law, as amended by chapter
 420 of the laws of 1975, is amended to read as follows:
   § 342-b. Recovery of damages  by  attorney  general.  In  addition  to
 existing  statutory  AND  COMMON  LAW authority to bring such actions on
 behalf of the state, [and] public authorities, AND RESIDENT PERSONS  AND
 ENTITIES,  the  attorney  general may also bring action on behalf of any
 political subdivision or public authority of the state upon the  request
 of such political subdivision or public authority, OR IN THE NAME OF THE
 STATE, AS PARENS PATRIAE, ON BEHALF OF PERSONS AND OTHER ENTITIES RESID-
 ING  IN  THE  STATE  OF  NEW  YORK, to recover damages for violations of
 section three hundred forty of  this  article,  or  to  recover  damages
 provided  for  by  federal  law  for violations of the federal antitrust
 laws. In any class action the attorney general may bring  on  behalf  of
 [these  or  other  subordinate]  governmental entities, any governmental
 entity that does not affirmatively exclude itself from the action,  upon
 due notice thereof, shall be deemed to have requested to be treated as a
 member  of  the class represented in that action.  The attorney general,
 on behalf of the state of New York, shall be entitled to retain from any
 moneys recovered  in  such  actions  the  costs  and  expenses  of  such
 services.
   § 7. The general business law is amended by adding a new section 342-d
 to read as follows:
 S. 6748--A                          8
 
   §  342-D.  RECOVERY  OF  EXPERT  WITNESSES' FEES AND COSTS BY ATTORNEY
 GENERAL AND PRIVATE LITIGANTS. IN ANY ACTION ALLEGING A VIOLATION  OF  A
 PROVISION  OF  THIS ARTICLE, INCLUDING ACTIONS BROUGHT UNDER SUBDIVISION
 TWELVE OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW, THE ATTORNEY GENERAL
 AND  PRIVATE  LITIGANTS  SHALL RECOVER REASONABLE FEES AND COSTS FOR ITS
 EXPERT WITNESSES AND CONSULTANTS IF  THE  ATTORNEY  GENERAL  OR  PRIVATE
 LITIGANTS PREVAIL IN SUCH ACTION.
   § 8. Non-compete clauses.
   1. Definitions. For purposes of this section:
   (a)  (1)  "Non-compete  clause"  means  a  contractual term between an
 employer and a worker that prevents the worker from seeking or accepting
 employment with a person, or operating a business, after the  conclusion
 of the worker's employment with the employer.
   (2)  The term "non-compete clause" includes a contractual term that is
 a de facto non-compete clause because it has the effect  of  prohibiting
 the worker from seeking or accepting employment with a person or operat-
 ing  a business after the conclusion of the worker's employment with the
 employer. The following types of contractual terms, among others, may be
 de facto non-compete clauses:
   i. A non-disclosure agreement between an employer and a worker that is
 written so broadly that it effectively precludes the worker from working
 in the same field after the conclusion of the worker's  employment  with
 the employer.
   ii.  A contractual term between an employer and a worker that requires
 the worker to pay the employer or  a  third-party  entity  for  training
 costs  if  the  worker's  employment  terminates within a specified time
 period, where the required payment is  not  reasonably  related  to  the
 costs the employer incurred for training the worker.
   (b)  "Employer"  means  a person, as defined in 15 U.S.C. 57b-1(a)(6),
 that hires or contracts with a worker to work for the person.
   (c) "Employment" means work for an employer, as the term  employer  is
 defined in paragraph (b) of this subdivision.
   (d)  "Substantial  owner, substantial member, and substantial partner"
 mean an owner, member, or partner holding at least a 25  percent  owner-
 ship interest in a business entity.
   (e) "Worker" means a natural person who works, whether paid or unpaid,
 for  an  employer.  The  term includes, without limitation, an employee,
 individual classified as  an  independent  contractor,  extern,  intern,
 volunteer,  apprentice,  or  sole proprietor who provides a service to a
 client or customer. The term worker does not include a franchisee in the
 context of a franchisee-franchisor relationship; however, the term work-
 er includes a natural person who works for the franchisee or franchisor.
 Non-compete clauses between franchisors  and  franchisees  would  remain
 subject to federal antitrust law as well as all other applicable law.
   2. Unfair method of competition. It is an unfair method of competition
 for  an  employer  to  enter into or attempt to enter into a non-compete
 clause with a worker; maintain with a worker a  non-compete  clause;  or
 represent to a worker that the worker is subject to a non-compete clause
 where the employer has no good faith basis to believe that the worker is
 subject to an enforceable non-compete clause.
   3.  Existing  non-compete clauses. (a) To comply with subdivision 2 of
 this section, which states that it is an unfair  method  of  competition
 for  an  employer  to  maintain  with  a worker a non-compete clause, an
 employer that entered into a non-compete clause with a worker  prior  to
 the  compliance  date  must rescind the non-compete clause no later than
 the compliance date.
 S. 6748--A                          9
 
   (b) (1) An employer that rescinds a  non-compete  clause  pursuant  to
 paragraph (a) of this subdivision must provide notice to the worker that
 the  worker's  non-compete  clause is no longer in effect and may not be
 enforced against the worker.  The employer must provide  the  notice  to
 the worker in an individualized communication. The employer must provide
 the  notice  on  paper  or  in a digital format such as, for example, an
 email or text message. The employer must provide the notice to the work-
 er within 45 days of rescinding the non-compete clause.
   (2) The employer must provide the notice to  a  worker  who  currently
 works  for  the employer. The employer must also provide the notice to a
 worker who formerly worked for the employer, provided that the  employer
 has the worker's contact information readily available.
   (3) The following model language constitutes notice to the worker that
 the  worker's  non-compete  clause is no longer in effect and may not be
 enforced against the worker, for purposes of subparagraph  one  of  this
 paragraph.  An  employer  may also use different language, provided that
 the notice communicates to the  worker  that  the  worker's  non-compete
 clause  is no longer in effect and may not be enforced against the work-
 er.  "A new state law makes it unlawful for us to maintain a non-compete
 clause in your employment contract. As of {DATE 180 DAYS AFTER ENACTMENT
 OF THIS LAW}, the non-compete clause in your contract is  no  longer  in
 effect. This means that once you stop working for {EMPLOYER NAME}:
   You  may  seek  or accept a job with any company or any person-even if
 they compete with {EMPLOYER NAME}.
   You may run your own  business-even  if  it  competes  with  {EMPLOYER
 NAME}.
   You  may  compete  with  {EMPLOYER  NAME}  at  any time following your
 employment with {EMPLOYER NAME}.
   This law does not affect any other terms of your employment contract."
   (c) An employer complies with the rescission requirement in  paragraph
 (a) of this subdivision where it provides notice to a worker pursuant to
 paragraph (b) of this subdivision.
   4.  Applicability. The requirements of this section shall not apply to
 a non-compete clause that is entered into by a person who is  selling  a
 business  entity or otherwise disposing of all of the person's ownership
 interest in the business entity, or by a person who is  selling  all  or
 substantially  all  of  a  business  entity's operating assets, when the
 person restricted by the non-compete clause is a substantial  owner  of,
 or  substantial member or substantial partner in, the business entity at
 the time the person enters  into  the  non-compete  clause.  Non-compete
 clauses  covered by this exception would remain subject to federal anti-
 trust law as well as all other applicable law.
   § 9. The general business law is amended by adding a new  section  348
 to read as follows:
   § 348. PROHIBITION ON UNFAIR METHODS OF COMPETITION. 1. UNFAIR METHODS
 OF  COMPETITION  ARE  HEREBY DECLARED UNLAWFUL. AS USED IN THIS SECTION,
 "UNFAIR METHODS OF COMPETITION" SHALL MEAN AND INCLUDE ANY ACT OR  PRAC-
 TICE  THAT  THREATENS  AN  INCIPIENT  VIOLATION OF AN ANTI-TRUST LAW, OR
 VIOLATES THE POLICY OR SPIRIT OF AN ANTI-TRUST LAW BECAUSE  ITS  EFFECTS
 ARE  COMPARABLE  TO  OR THE SAME AS A VIOLATION OF THE LAW, OR OTHERWISE
 SIGNIFICANTLY THREATENS OR HARMS COMPETITION.
   2. THE ATTORNEY GENERAL SHALL HAVE THE AUTHORITY THROUGH RULEMAKING TO
 DECLARE CERTAIN CONDUCT OR PRACTICES AS UNFAIR METHODS OF COMPETITION.
   § 10. Severability. If any provision of this act, or  the  application
 thereof  to  any person or circumstances, is held invalid or unconstitu-
 tional, that invalidity or unconstitutionality shall  not  affect  other
 S. 6748--A                         10
 
 provisions  or applications of this act that can be given effect without
 the invalid or unconstitutional provision or application,  and  to  this
 end the provisions of this act are severable.
   § 11. This act shall take effect immediately.