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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 99, Business & Commerce Code, as effective |
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April 1, 2009, is amended by adding Chapter 2003 to read as follows: |
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CHAPTER 2003. RESTRICTED PRICING DURING ABNORMAL MARKET |
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DISRUPTION |
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Sec. 2003.001. DEFINITION. In this chapter, "essential |
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consumer good or service" means a good or service that is purchased |
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or provided primarily for personal, family, or household purposes |
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and that is necessary for the health, safety, or welfare of a |
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consumer. The term includes: |
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(1) pharmaceutical products, including prescription |
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medications; |
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(2) residential construction materials; |
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(3) gas and electric services; |
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(4) ice; and |
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(5) motor fuel. |
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Sec. 2003.002. GOVERNOR'S DECLARATION OF ABNORMAL |
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DISRUPTION OF MARKET. (a) The governor may declare an abnormal |
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disruption of the market by proclamation if the governor, after |
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consulting with the attorney general, determines that essential |
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goods or services are not readily available, or that a substantial |
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likelihood exists that essential goods or services will not be |
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readily available, as a result of an emergency or disaster such as: |
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(1) a fire, explosion, flood, hurricane, tornado, |
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drought, or earthquake; or |
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(2) an act of terrorism or war that results in: |
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(A) the death of or physical injury to numerous |
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individuals; or |
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(B) massive destruction of property. |
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(b) The governor's authority to declare an abnormal |
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disruption of the market under this section is in addition to the |
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governor's authority to declare a state of disaster under Chapter |
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418, Government Code. |
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Sec. 2003.003. PUBLICATION OF PROCLAMATION. The governor |
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shall publish the proclamation of an abnormal disruption of the |
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market: |
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(1) in the Texas Register; |
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(2) on the office of the governor's Internet website; |
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and |
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(3) in any other manner the governor considers |
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adequate to give notice to persons in the geographical area covered |
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by the proclamation. |
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Sec. 2003.004. PROCLAMATION SPECIFICATIONS. (a) The |
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governor's proclamation of an abnormal disruption of the market |
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must specify: |
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(1) the geographical area covered by the proclamation; |
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and |
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(2) the date and time at which the abnormal disruption |
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of the market began. |
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(b) The geographical area covered by the governor's |
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proclamation may not be larger than necessary to effectively |
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respond to the disruption of the market. |
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(c) The date and time specified by the proclamation under |
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Subsection (a)(2) may precede the date of the proclamation. |
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Sec. 2003.005. EXPIRATION OF PROCLAMATION. The |
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proclamation of an abnormal market disruption expires on the |
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earlier of: |
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(1) the date on which the governor declares it |
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expired; or |
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(2) the 60th day after the date the proclamation is |
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issued. |
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Sec. 2003.006. UNCONSCIONABLE PRICES PROHIBITED; |
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DETERMINATION OF UNCONSCIONABLE PRICE. (a) If a proclamation of an |
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abnormal disruption of the market is in effect for an area, a |
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person, including a merchant or wholesaler, may not sell or offer |
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for sale an essential consumer good or service in the area for a |
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price that is unconscionably excessive. |
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(b) A price charged by a person for an essential consumer |
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good or service is unconscionably excessive as a matter of law if |
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the price exceeds by 15 percent or more the price at which the good |
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or service was sold or offered for sale by the person in the usual |
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course of business, or was readily obtainable by consumers in the |
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trade area, immediately before the occurrence of the event or |
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circumstance identified by the governor's proclamation as |
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preventing essential consumer goods or services from being readily |
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available. |
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(c) A violation of this section is a deceptive trade |
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practice under Subchapter E, Chapter 17, and constitutes a separate |
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violation from any violation of Section 17.46(b)(27). |
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(d) It is an affirmative defense to liability under this |
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section that the price charged by the person is: |
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(1) attributable to additional costs imposed by the |
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person's suppliers or otherwise necessarily incurred in procuring |
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the goods or providing the services during the abnormal disruption |
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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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(e) As used in this section, "person" does not include a |
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governmental entity. |
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SECTION 2. This Act takes effect September 1, 2009. |