81R10934 CLG-F
By: Leibowitz H.B. No. 24
Substitute the following for H.B. No. 24:
By: England C.S.H.B. No. 24
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on the prices of certain consumer goods
and services during an abnormal disruption of the market.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, as
effective April 1, 2009, is amended by adding Chapter 106 to read as
follows:
CHAPTER 106. RESTRICTED PRICING DURING ABNORMAL DISRUPTION OF
MARKET
Sec. 106.001. DEFINITIONS. In this chapter:
(1) "Essential consumer good or service" means a good
or service that is purchased or provided primarily for personal,
family, or household purposes and that is necessary for the health,
safety, or welfare of a consumer. The term includes residential
construction.
(2) "Merchant" or "wholesaler" does not include a
governmental entity.
Sec. 106.002. UNCONSCIONABLE PRICES PROHIBITED;
DETERMINATION OF UNCONSCIONABLE PRICE. (a) If an abnormal
disruption of the market for any consumer good or service occurs in
an area, a merchant or wholesaler may not sell or offer for sale an
essential consumer good or service in the area for a price that is
unconscionably excessive.
(b) A price charged by a merchant or wholesaler for an
essential consumer good or service is unconscionably excessive as a
matter of law if the price exceeds by 20 percent or more the price at
which the good or service was sold or offered for sale by the
merchant or wholesaler in the usual course of business, or was
readily obtainable by consumers in the trade area, immediately
before the abnormal disruption of the market that prevents
essential consumer goods or services from being readily available.
(c) A price charged by a merchant or wholesaler for an
essential consumer good or service is not considered unconscionably
excessive as a matter of law if the price is attributable to and
consistent with the price charged for the good or service during a
special event or traditional high demand period that is unrelated
to the abnormal disruption of the market.
(d) A violation of this section is considered a false,
misleading, or deceptive act or practice for purposes of Section
17.46(a), and is subject to action by the consumer protection
division of the attorney general's office as provided by Section
17.46(a) or by a county or district attorney having jurisdiction.
(e) It is an affirmative defense to liability under this
section that the price charged by the merchant or wholesaler is:
(1) attributable to additional costs imposed by the
merchant's or wholesaler's suppliers or otherwise necessarily
incurred in procuring the goods or providing the services during
the abnormal disruption of the market; or
(2) the result of increased costs unrelated to the
abnormal disruption of the market.
(f) This chapter does not apply to a service that is:
(1) monitored by the Public Utility Commission of
Texas under Section 39.157, Utilities Code;
(2) provided by a retail electric provider as defined
by Section 31.002, Utilities Code;
(3) provided by an electric utility as defined by
Section 31.002, Utilities Code; or
(4) provided by a gas utility whose rates are
established under Subchapter B, Chapter 104, Utilities Code.
SECTION 2. This Act takes effect September 1, 2009.