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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions on the prices of certain consumer goods |
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and services during an abnormal disruption of the market. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 4, Business & Commerce Code, is amended by |
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adding Chapter 51 to read as follows: |
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CHAPTER 51. RESTRICTED PRICING DURING ABNORMAL DISRUPTION OF |
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MARKET |
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Sec. 51.001. DEFINITIONS. In this chapter: |
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(1) "Essential consumer good or service" means a good |
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or service that is purchased or provided primarily for personal, |
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family, or household purposes and that is necessary for the health, |
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safety, or welfare of a consumer. The term includes residential |
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construction. |
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(2) "Merchant" or "wholesaler" does not include a |
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governmental entity. |
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Sec. 51.002. UNCONSCIONABLE PRICES PROHIBITED; |
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DETERMINATION OF UNCONSCIONABLE PRICE. (a) If an abnormal |
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disruption of the market for any consumer good or service occurs in |
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an area, a merchant or wholesaler may not sell or offer for sale an |
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essential consumer good or service in the area for a price that is |
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unconscionably excessive. |
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(b) A price charged by a merchant or wholesaler for an |
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essential consumer good or service is unconscionably excessive as a |
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matter of law if the price exceeds by 20 percent or more the price at |
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which the good or service was sold or offered for sale by the |
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merchant or wholesaler in the usual course of business, or was |
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readily obtainable by consumers in the trade area, immediately |
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before the abnormal disruption of the market that prevents |
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essential consumer goods or services from being readily available. |
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(c) A price charged by a merchant or wholesaler for an |
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essential consumer good or service is not considered unconscionably |
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excessive as a matter of law if the price is attributable to and |
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consistent with the price charged for the good or service during a |
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special event or traditional high demand period that is unrelated |
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to the abnormal disruption of the market. |
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(d) A violation of this section is considered a false, |
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misleading, or deceptive act or practice for purposes of Section |
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17.46(a), and is subject to action only by the consumer protection |
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division of the attorney general's office as provided by Section |
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17.46(a). |
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(e) It is an affirmative defense to liability under this |
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section that the price charged by the merchant or wholesaler is: |
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(1) attributable to additional costs imposed by the |
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merchant's or wholesaler's suppliers or otherwise necessarily |
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incurred in procuring the goods or providing the services during |
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the abnormal disruption of the market; or |
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(2) the result of increased costs unrelated to the |
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abnormal disruption of the market. |
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(f) This chapter does not apply to a service that is: |
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(1) monitored by the Public Utility Commission of |
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Texas under Section 39.157, Utilities Code; |
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(2) provided by a retail electric provider as defined |
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by Section 31.002, Utilities Code; |
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(3) provided by an electric utility as defined by |
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Section 31.002, Utilities Code; or |
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(4) provided by a gas utility whose rates are |
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established under Subchapter B, Chapter 104, Utilities Code. |
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SECTION 2. This Act takes effect September 1, 2007. |