81R3287 TJS-D
By: West S.B. No. 487
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. Title 99, Business & Commerce Code, as effective
April 1, 2009, is amended by adding Chapter 2003 to read as follows:
CHAPTER 2003. RESTRICTED PRICING DURING ABNORMAL MARKET
DISRUPTION
Sec. 2003.001. DEFINITION. In this chapter, "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:
(1) pharmaceutical products, including prescription
medications;
(2) residential construction materials;
(3) gas and electric services;
(4) ice; and
(5) motor fuel.
Sec. 2003.002. GOVERNOR'S DECLARATION OF ABNORMAL
DISRUPTION OF MARKET. (a) The governor may declare an abnormal
disruption of the market by proclamation if the governor, after
consulting with the attorney general, determines that essential
goods or services are not readily available, or that a substantial
likelihood exists that essential goods or services will not be
readily available, as a result of an emergency or disaster such as:
(1) a fire, explosion, flood, hurricane, tornado,
drought, or earthquake; or
(2) an act of terrorism or war that results in:
(A) the death of or physical injury to numerous
individuals; or
(B) massive destruction of property.
(b) The governor's authority to declare an abnormal
disruption of the market under this section is in addition to the
governor's authority to declare a state of disaster under Chapter
418, Government Code.
Sec. 2003.003. PUBLICATION OF PROCLAMATION. The governor
shall publish the proclamation of an abnormal disruption of the
market:
(1) in the Texas Register;
(2) on the office of the governor's Internet website;
and
(3) in any other manner the governor considers
adequate to give notice to persons in the geographical area covered
by the proclamation.
Sec. 2003.004. PROCLAMATION SPECIFICATIONS. (a) The
governor's proclamation of an abnormal disruption of the market
must specify:
(1) the geographical area covered by the proclamation;
and
(2) the date and time at which the abnormal disruption
of the market began.
(b) The geographical area covered by the governor's
proclamation may not be larger than necessary to effectively
respond to the disruption of the market.
(c) The date and time specified by the proclamation under
Subsection (a)(2) may precede the date of the proclamation.
Sec. 2003.005. EXPIRATION OF PROCLAMATION. The
proclamation of an abnormal market disruption expires on the
earlier of:
(1) the date on which the governor declares it
expired; or
(2) the 60th day after the date the proclamation is
issued.
Sec. 2003.006. UNCONSCIONABLE PRICES PROHIBITED;
DETERMINATION OF UNCONSCIONABLE PRICE. (a) If a proclamation of an
abnormal disruption of the market is in effect for an area, a
person, including 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 person for an essential consumer
good or service is unconscionably excessive as a matter of law if
the price exceeds by 15 percent or more the price at which the good
or service was sold or offered for sale by the person in the usual
course of business, or was readily obtainable by consumers in the
trade area, immediately before the occurrence of the event or
circumstance identified by the governor's proclamation as
preventing essential consumer goods or services from being readily
available.
(c) A violation of this section is a deceptive trade
practice under Subchapter E, Chapter 17, and constitutes a separate
violation from any violation of Section 17.46(b)(27).
(d) It is an affirmative defense to liability under this
section that the price charged by the person is:
(1) attributable to additional costs imposed by the
person'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.
(e) As used in this section, "person" does not include a
governmental entity.
SECTION 2. This Act takes effect September 1, 2009.