GREEN SHEET REDIGEST
HB 763 2020 Regular Session McFarland
CONSUMERS/PROTECTION: Provides relative to a gubernatorial declaration of an
abnormal economic disruption
DIGEST
Present law (R.S. 9:721 et seq.) provides for the La. Homeland Security and Emergency
Assistance and Disaster Act which confers certain emergency powers upon the governor and
the parish presidents in order to address homeland security and emergency preparedness for
the state and to respond to natural and man-made catastrophes.
Present law provides that the governor is responsible for meeting the dangers to the state and
people presented by emergencies or disasters, and authorizes the governor to issue executive
orders, proclamations, and regulations which have the force and effect of law.
Present law (R.S. 29:732) provides, in part, that during a state of emergency as declared by
the governor or as declared by the parish president, the prices charged or value received for
goods and services sold within the designated emergency area may not exceed the prices
ordinarily charged for comparable goods and services in the same market area at or
immediately before the time of the state of emergency, unless the price by the seller is
attributable to fluctuations in applicable commodity markets, fluctuations in applicable
regional or national market trends, or to reasonable expenses and charges and attendant
business risks incurred in procuring or selling the goods or services during the state of
emergency.
Present law provides that the prohibition from price gouging pursuant to present law is
effective for an initial period not to exceed 30 days pursuant to the initial declared state of
emergency as referenced in present law (R.S. 29:724) and shall be renewed only by specific
reference in any subsequent proclamations.
Proposed law retains present law and further authorizes a gubernatorial declaration of an
abnormal economic disruption in order to prohibit excessive price increases for certain goods
and services during an abnormal economic disruption.
Proposed law defines "abnormal economic disruption" and "costs".
Proposed law provides that the gubernatorial declaration may specify certain goods or
services which are covered by the prohibition.
Proposed law provides that a price increase is not grossly excessive if the increase was
directly attributable to any of the following:
(1)Price increases in applicable regional, national, or international commodity markets.
(2)Pricing set forth in any preexisting agreement, including stored and in-transit
inventory.
(3)Additional costs imposed on the person by the supplier of the goods or services.
(4)Additional costs for labor, services, or materials used to provide the goods or
services, including costs of replacement inventory, additional costs to transport goods
or services, and additional labor charges.
Proposed law provides that the provisions of present law (R.S. 29:732) regarding price
gouging shall supercede any conflicting provisions of proposed law upon the implementation
of present law by the declaration of a state of emergency.
(Adds R.S. 29:723(18) and (19) and 724(H))
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Prepared by Beth O'Quin. Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
1. Make a technical change.
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Prepared by Beth O'Quin.