Texas House Bill HB4126

Texas 2021 - 87th Regular

Caption

Relating to clarifying that natural gas and electricity are necessities during a declared disaster under the Deceptive Trade Practices Act.

Impact

The bill's implications extend to changes in the Business & Commerce Code, specifically modifying how price gouging is defined in relation to natural gas and electricity. This amendment is expected to strengthen existing consumer protection laws by explicitly including utilities among the items that are prohibited from being sold at excessive prices during emergencies. Consequently, this could lead to more stringent enforcement actions against businesses that engage in such practices during disasters, thereby promoting fair pricing for vital services.

Summary

House Bill 4126 aims to clarify that natural gas and electricity are classified as necessities during a declared disaster under the Deceptive Trade Practices Act. This legislation is designed to enhance consumer protections against price gouging in the wake of natural disasters declared by the governor or the president of the United States. By formally recognizing these utilities as necessities, the bill seeks to prevent businesses from charging exorbitant prices for essential services during times of crisis, thereby safeguarding the public interest.

Contention

While the bill presents strong consumer protection measures, there may be concerns about its impact on businesses that provide these essential services. Critics might argue that stricter regulations on pricing could hinder the ability of these companies to recover costs incurred during disasters when supply chains are disrupted. Furthermore, there may be debates about the practical enforcement of these provisions and whether they sufficiently address the diverse challenges faced by consumers and businesses during emergencies. Overall, while the bill aims to protect consumers, the potential challenges in implementation and impact on utility providers will require close consideration.