Vote no on Georgia House Resolution No. 178

Vote no on Georgia

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House Resolution No. 178

Ga. L. 2010, p. 1260

A RESOLUTION

Proposing an amendment to the Constitution so as to authorize the General Assembly to provide for contracts that limit competitive activities between or among employers and employees, distributors and manufacturers, lessors and lessees, partnerships and partners, franchisor s and franchisees, sellers and purchasers of a business or commercial enterprise, or two or more employers; to provide for the submission of this amendment for ratification or rejection; and for other purposes.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article III, Section VI, Paragraph V of the Constitution is amended by revising subparagraph (c) as follows:

"(c) (1) The General Assembly shall not have the power to authorize any contract or agreement which may have the effect of or which is intended to have the effect of encouraging a monopoly, which is hereby declared to be unlawful and void.

Except as otherwise provided in subparagraph (c)(2) of this paragraph, the General Assembly shall not have the power to authorize any contract or agreement which may have the effect of or which is intended to have the effect of defeating or lessening competition, which is hereby declared to be unlawful and void.

(2) The General Assembly shall have the power to authorize and provide by general law for judicial enforcement of contracts or agreements restricting or regulating competitive activities between or among:

(A) Employers and employees;

(B) Distributors and manufacturers;

(D) Partnerships and partners;

(E) Franchisors and franchisees;

(F) Sellers and purchasers of a business or commercial enterprise; or

(G) Two or more employers.

(3) The authority granted to the General Assembly in subparagraph (c)(2) of this paragraph shall include the authority to grant to courts by general law the power to limit the duration , geographic area, and scope of prohibited activities provided in a contract or agreement restricting or regulating competitive activities to render such contract or agreement reasonable under the circumstances for which it was made."

SECTION 2.

The above proposed amendment to the Constitution shall be published and submitted as provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the above proposed amendment shall have written or printed thereon the following:

"( ) YES ( ) NO

Shall the Constitution of Georgia be amended so as to make Georgia more economically competitive by authorizing legislation to uphold reasonable competitive agreements?"

All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes."

All persons desiring to vote against ratifying the proposed amendment shall vote "No."

If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become a part of the Constitution of this state.

SUMMARY OF PROPOSED CONSTITUTIONAL AMENDMENT

Pursuant to requirements of the Georgia Constitution, Attorney General Thurbert E. Baker, Secretary of State Brian P. Kemp, and Legislative Counsel Sewell R. Brumby hereby provide the summaries of the proposed constitutional amendments that will appear on the November 2, 2010, general election ballot for consideration by the people of Georgia:

Allows competitive contracts to be enforced in Georgia courts.

House Resolution No. 178 Ga. L. 2010, p. 1260

"( ) YES Shall the Constitution

( ) NO of Georgia be amended so as to make Georgia more economically competitive by

authorizing legislation to uphold reasonable competitiv0e agreements?"

This proposal provides an exception to the current constitutional provision which prohibits the General Assembly from authorizing any contract or agreement which may have the effect of or which is intended to have the effect of defeating or lessening competition. Under the proposal, the General Assembly would be empowered to authorize and provide by general law for judicial enforcement of contracts or agreements restricting or regulating competitive activities between or among:

(a) employers and employees;

(b) distributors and manufacturers;

(d) partnerships and partners;

(e) franchisors and franchisees;

(f) sellers and purchasers of a business or commercial enterprise; or

(g) two or more employers.

This would include legislative authority to grant to courts by general law the power to "blue-pencil" or limit the duration, geographic area, and scope of prohibited activities provided in a contract or agreement restricting or regulating competitive activities in order to render such contract or agreement reasonable under the circumstances for which it was made.

The General Assembly has enacted a law to exercise the authority granted by the proposed constitutional amendment. This law will become effective only if the constitutional amendment is ratified by the voters. This law is published at Georgia Laws 2009, p. 231, and was enacted by 2009 House Bill 173, Act No. 64.

Examples of contracts which would be authorized by the law include, but are not limited to:

(1) an agreement by an employee to refrain from competing with the employer after termination of employment; and

(2) an agreement by a seller not to compete with the seller's customer or solicit business from customers of the seller's customer.

A copy of this entire proposed constitutional amendment is on file in the office of the judge of the probate court and is available for public inspection.