KLA urging passage of bill to restore antitrust law

State lawmakers are working toward adjournment of the 2012 Kansas legislative session this week. Reapportionment of legislative districts, a 2013 state budget and education funding still are hanging in the balance, causing the delay.

KLA and other business groups are urging state lawmakers to pass House Substitute for Senate Bill 291 before adjournment in response to a recent Kansas Supreme Court ruling. On May 4, the Kansas Supreme Court decided the case O'Brien v. Leegin, in which the court overturned longstanding Kansas antitrust law. The decision abolished existing precedent that required Kansas courts to balance the potential benefits of a marketing arrangement against its possible adverse effects to the public or marketplace when determining if the arrangement is lawful. As a result, any marketing arrangement that sets a price or demonstrates any adverse effect on the marketplace, regardless of the benefits, may be challenged. If allowed to stand, this interpretation of Kansas antitrust law could invalidate numerous marketing arrangements within the Kansas livestock industry and expose contracting parties to extensive liability.

House Substitute for SB 291 would restore Kansas antitrust law to its original status prior to the O’Brien case. The bill is intended to prevent harmful litigation and preserve existing marketing agreements. KLA members are encouraged to contact their state legislators and ask them to pass H Sub for SB 291 before adjournment. State legislators can be contacted by clicking here. 

For more information visit www.kla.org.

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