81R1408 KFF-D By: Brown of Brazos H.B. No. 654 A BILL TO BE ENTITLED AN ACT relating to the prices of certain consumer goods and services during a declared state of disaster. 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. PRICING OF CERTAIN CONSUMER GOODS AND SERVICES DURING DECLARED STATE OF DISASTER Sec. 106.001. DEFINITIONS. In this chapter: (1) "Designated disaster area" means the geographical area of this state subject to a declaration of a state of disaster under Section 418.014, Government Code. (2) "Disaster" has the meaning assigned by Section 418.004, Government Code. (3) "Essential consumer good or service" means a good or service that is: (A) purchased or provided primarily for personal, family, or household purposes; and (B) necessary for the health, safety, or welfare of a consumer. Sec. 106.002. EXECUTIVE ORDER TO FREEZE CERTAIN PRICES DURING DECLARED DISASTER. (a) During the time a state of disaster is in effect under Section 418.014, Government Code, the governor may implement this section by executive order if the governor determines that it is necessary to prevent persons from taking advantage of consumers by charging exorbitant or excessive prices for essential consumer goods or services that are not readily available as a result of a disaster. (b) A merchant or wholesaler may not sell or offer to sell an essential consumer good or service in a designated disaster area at a price that is in excess of 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 date specified in the executive order, which may not be earlier than the date the governor declared a state of disaster under Section 418.014, Government Code. (c) The governor may restrict the price freeze provided under Subsection (b) to particular categories of essential consumer goods or services by specifically identifying in the executive order issued under this section the categories of essential consumer goods or services to which the price freeze applies. (d) A violation of this section is a deceptive trade practice under Subchapter E, Chapter 17, and constitutes a violation separate from any violation of Section 17.46(b)(27). Sec. 106.003. PUBLICATION OF EXECUTIVE ORDER. The governor shall publish the executive order: (1) on the office of the governor's Internet website; and (2) in any other manner the governor considers adequate to give notice to persons in the designated disaster area. Sec. 106.004. TERMINATION OF EXECUTIVE ORDER. Unless terminated on an earlier date by the governor, an executive order issued under this section automatically terminates on the date a declared state of disaster is terminated under Section 418.014, Government Code. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.