79R4122 ATP-F

By:  Leibowitz                                                    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(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.