79R8034 ATP-D
By: Leibowitz, Martinez, Eiland, Herrero, Vo H.B. No. 695
Substitute the following for H.B. No. 695:
By: Zedler C.S.H.B. No. 695
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 4, Business & Commerce Code, is amended by
adding Chapter 48 to read as follows:
CHAPTER 48. RESTRICTED PRICING DURING ABNORMAL DISRUPTION OF
MARKET
Sec. 48.001. 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 residential construction.
Sec. 48.002. GOVERNOR'S DECLARATION OF ABNORMAL DISRUPTION
OF MARKET. (a) The governor may declare an abnormal disruption of
the market by proclamation if the governor determines that
essential consumer goods or services are not readily available as a
result of:
(1) a fire, an explosion, a flood, severe weather, a
drought, an earthquake, volcanic activity, a spill or release of
oil or a hazardous substance as defined by Section 361.003, Health
and Safety Code, contamination, a utility or transportation
emergency, disease, blight, infestation, civil disturbance, or a
riot; or
(2) an act of sabotage, 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. 48.003. 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 occurred.
(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. 48.004. TERMINATION OF PROCLAMATION. The proclamation
of an abnormal disruption of the market may be terminated:
(1) by the governor if the event or circumstance that
has prevented essential consumer goods or services from being
readily available no longer exists; or
(2) by joint resolution of the legislature at any
time.
Sec. 48.005. 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
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 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 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.
(e) As used in this section, "merchant" or "wholesaler" does
not include a governmental entity.
SECTION 2. This Act takes effect September 1, 2005.