HB 1621-FN – AS AMENDED BY THE HOUSE

15Feb2006… 0729h

2006 SESSION

06-2333

05/10

HOUSE BILL 1621-FN

AN ACT prohibiting the overpricing of commodities during a declared state of emergency or a market emergency.

SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13; Rep. Weyler, Rock 8; Rep. Packard, Rock 3; Rep. Plifka, Ches 4; Sen. Fuller Clark, Dist 24

COMMITTEE: Commerce

AMENDED ANALYSIS

This bill prohibits distributors and merchants from selling commodities at unconscionably high prices during a declared state of emergency or a market emergency.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Feb2006… 0729h

06-2333

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT prohibiting the overpricing of commodities during a declared state of emergency or a market emergency.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Commodity Prices; Overpricing Prohibited. Amend RSA by inserting after chapter 359-H the following new chapter:

CHAPTER 359-I

COMMODITY PRICES

359-I:1 Definitions. In this chapter:

I. “Commodity” means any goods, services, materials, merchandise, supplies, equipment, resources, or other article of commerce, including food, water, ice, medicine, chemicals, petroleum products, and lumber, necessary for consumption or use as a direct result of a declared state of emergency or market emergency.

II. “Distributor” means the seller of a commodity to a selling merchant.

III. “Market emergency” means a significant disruption to the production, distribution, or sale of a commodity or commodities caused by an event such as a natural or man-made emergency or disaster.

IV. “Selling merchant” means the retail seller of a commodity to an end user of the commodity.

359-I:2 Prohibition on Price Gouging.

I. It is unlawful for any distributor or selling merchant, or his or her agent or employee, to sell a commodity to a consumer at an unconscionably high price during any of the following events:

(a) During a declaration of a state of emergency by the governor within the area of the declared state of emergency.

(b) Following the finding of a market emergency by the Merrimack county superior court upon petition filed by the attorney general within the area of the finding of a market emergency.

II. A price is unconscionably high if the amount charged represents a gross disparity between the price of the commodity and:

(a) The price at which the same commodity was sold or offered for sale in the usual course of business during the 7 days immediately prior to the declared state of emergency or market emergency; and

(b) The price of the commodity of like grade and quality when compared to the highest price at which the commodity was offered for sale by other similar businesses in the same or adjacent county.

III. Price increases due to an increase in the amount charged attributable to increased wholesale, delivery, labor, replacement costs or other necessary costs incurred or reasonably anticipated to be incurred by the selling merchant or wholesaler, shall not be considered price gouging.

IV. A violation of this chapter shall be enforceable by the attorney general for civil penalties pursuant to RSA 358-A:4, and shall not be subject to the criminal provisions under RSA 358-A:6 or the private right of action of RSA 358-A:10. Any violation of this chapter shall be based on the setting of the price and such violation shall not be based on each separate sale.

2 Effective Date. This act shall take effect January 1, 2007.

LBAO

06-2333

12/1/05

HB 1621-FN - FISCAL NOTE

AN ACT prohibiting overpricing of fuel.

FISCAL IMPACT:

METHODOLOGY: