Bill Text: IL HB4060 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Makes unlawful, until January 1, 2022, an increase in the cost of any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels of more than 10% during a state of emergency declared by the President, the Governor, or certain local officials. Defines terms. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-04-06 - Referred to Rules Committee [HB4060 Detail]

Download: Illinois-2021-HB4060-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4060

Introduced , by Rep. Angelica Guerrero-Cuellar

SYNOPSIS AS INTRODUCED:
815 ILCS 505/2WWW new

Amends the Consumer Fraud and Deceptive Business Practices Act. Makes unlawful, until January 1, 2022, an increase in the cost of any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels of more than 10% during a state of emergency declared by the President, the Governor, or certain local officials. Defines terms. Effective immediately.
LRB102 12542 JLS 17880 b

A BILL FOR

HB4060LRB102 12542 JLS 17880 b
1 AN ACT concerning business.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by adding Section 2WWW as follows:
6 (815 ILCS 505/2WWW new)
7 Sec. 2WWW. Price gouging; state of emergency.
8 (a) The General Assembly finds that during a state of
9emergency or local emergency, including, but not limited to,
10an earthquake, flood, fire, riot, storm, drought, plant or
11animal infestation or disease, pandemic or epidemic disease
12outbreak, or other natural or manmade disaster, some merchants
13have taken unfair advantage of consumers by greatly increasing
14prices for essential consumer goods and services. While the
15pricing of consumer goods and services is generally best left
16to the marketplace under ordinary conditions, when a declared
17state of emergency or local emergency results in abnormal
18disruptions of the market, the public interest requires that
19excessive and unjustified increases in the prices of essential
20consumer goods and services be prohibited. It is the intent of
21the General Assembly in enacting this amendatory Act of the
22102nd General Assembly to protect citizens from excessive and
23unjustified increases in the prices charged during or shortly

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1after a declared state of emergency or local emergency for
2goods and services that are vital and necessary for the
3health, safety, and welfare of consumers, whether those goods
4and services are offered or sold in person, in stores, or
5online. Further, it is the intent of the General Assembly that
6this Section be liberally construed so that its beneficial
7purposes may be served.
8 (b) In this Section:
9 "Building materials" means lumber, construction tools,
10windows, and anything else used in the building or rebuilding
11of property.
12 "Consumer food item" means any article that is used or
13intended for use for food, drink, confection, or condiment by
14a person or animal.
15 "Cost" as applied to production includes the cost of raw
16materials, labor and all overhead expenses of the producer.
17 "Cost" as applied to distribution means the invoice or
18replacement cost, whichever is lower, of the article or
19product to the distributor and vendor, plus the cost of doing
20business by the distributor and vendor and in the absence of
21proof of cost of doing business a markup of 6% on such invoice
22or replacement cost shall be prima facie proof of such cost of
23doing business.
24 "Emergency supplies" includes, but is not limited to,
25water, flashlights, radios, batteries, candles, blankets,
26soaps, diapers, temporary shelters, tape, toiletries, plywood,

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1nails, and hammers.
2 "Gasoline" means any fuel used to power any motor vehicle
3or power tool.
4 "Goods" means tangible chattels bought for use primarily
5for personal, family, or household purposes, including
6certificates or coupons exchangeable for these goods, and
7including goods that, at the time of the sale or subsequently,
8are to be so affixed to real property as to become a part of
9the real property whether or not severable therefrom, but does
10not include any vehicle required to be registered under the
11Illinois Vehicle Code, nor any goods sold with the vehicle,
12and does not include any mobile home, as defined in the Mobile
13Home Park Act, nor any goods sold with the mobile home.
14 "Local emergency" means a natural or manmade emergency
15resulting from an earthquake, flood, fire, riot, storm,
16drought, plant or animal infestation or disease, pandemic or
17epidemic disease outbreak, or other natural or manmade
18disaster for which a local emergency has been declared by an
19official, board, or other governing body vested with authority
20to make that declaration in any county, municipality, or
21municipality and county in this State.
22 "Medical supplies" includes, but is not limited to,
23prescription and nonprescription medications, bandages, gauze,
24isopropyl alcohol, and antibacterial products.
25 "Repair or reconstruction services" means services
26performed by any person who is required to be licensed under

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1State law or a local ordinance, for repairs to residential or
2commercial property of any type that is damaged as a result of
3a disaster.
4 "Rental price" for housing means any of the following:
5 (1) For housing, including mobile homes, rented within
6 one year prior to the time of the proclamation or
7 declaration of emergency, the actual rental price paid by
8 the tenant. For housing not rented at the time of the
9 declaration or proclamation, but rented, or offered for
10 rent, within one year prior to the proclamation or
11 declaration of emergency, the most recent rental price
12 offered before the proclamation or declaration of
13 emergency. For housing rented at the time of the
14 proclamation or declaration of emergency but which becomes
15 vacant while the proclamation or declaration of emergency
16 remains in effect, the actual rental price paid by the
17 previous tenant or the amount specified in item (2),
18 whichever is greater. This amount may be increased by 5%
19 if the housing was previously rented or offered for rent
20 unfurnished, and it is now being offered for rent fully
21 furnished. This amount shall not be adjusted for any other
22 good or service, including, but not limited to, gardening
23 or utilities currently or formerly provided in connection
24 with the lease.
25 (2) For housing not rented and not offered for rent
26 within one year prior to the proclamation or declaration

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1 of emergency, 160% of the fair market rent established by
2 the United States Department of Housing and Urban
3 Development. This amount may be increased by 5% if the
4 housing is offered for rent fully furnished. This amount
5 shall not be adjusted for any other good or service,
6 including, but not limited to, gardening or utilities
7 currently or formerly provided in connection with the
8 lease.
9 (3) Housing advertised, offered, or charged, at a
10 daily rate at the time of the declaration or proclamation
11 of emergency, shall be subject to the rental price
12 described in item (1), if the housing continues to be
13 advertised, offered, or charged, at a daily rate. Housing
14 advertised, offered, or charged, on a daily basis at the
15 time of the declaration or proclamation of emergency,
16 shall be subject to the rental price in item (2), if the
17 housing is advertised, offered, or charged, on a periodic
18 lease agreement after the declaration or proclamation of
19 emergency.
20 "State of emergency" means a natural or manmade emergency
21resulting from an earthquake, flood, fire, riot, storm,
22drought, plant or animal infestation or disease, pandemic or
23epidemic disease outbreak, or other natural or manmade
24disaster for which a state of emergency has been declared by
25the President of the United States or the Governor.
26 "Transportation, freight, and storage services" means any

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1service that is performed by any company that contracts to
2move, store, or transport personal or business property or
3that rents equipment for those purposes, including towing
4services.
5 (c) Upon the proclamation of a state of emergency declared
6by the President of the United States or the Governor, or upon
7the declaration of a local emergency by an official, board, or
8other governing body vested with authority to make that
9declaration in any county, municipality, or municipality and
10county, and for a period of 30 days following that
11proclamation or declaration, it is unlawful for a person,
12contractor, business, or other entity to sell or offer to sell
13any consumer food items or goods, goods or services used for
14emergency cleanup, emergency supplies, medical supplies, home
15heating oil, building materials, housing, transportation,
16freight, and storage services, or gasoline or other motor
17fuels for a price of more than 10% greater than the price
18charged by that person for those goods or services immediately
19prior to the proclamation or declaration of emergency, or
20prior to a date set in the proclamation or declaration.
21However, a greater price increase is not unlawful if that
22person can prove that the increase in price was directly
23attributable to additional costs imposed on it by the supplier
24of the goods, or directly attributable to additional costs for
25labor or materials used to provide the services, during the
26state of emergency or local emergency, and the price is no more

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1than 10% greater than the total of the cost to the seller plus
2the markup customarily applied by that seller for that good or
3service in the usual course of business immediately prior to
4the onset of the state of emergency or local emergency. If the
5person, contractor, business, or other entity did not charge a
6price for the goods or services immediately prior to the
7proclamation or declaration of emergency, it may not charge a
8price that is more than 50% greater than the cost thereof to
9the vendor.
10 (d) Upon the proclamation of a state of emergency declared
11by the President of the United States or the Governor, or upon
12the declaration of a local emergency by an official, board, or
13other governing body vested with authority to make that
14declaration in any county, municipality, or municipality and
15county, and for a period of 180 days following that
16proclamation or declaration, it is unlawful for a contractor
17to sell or offer to sell any repair or reconstruction services
18or any services used in emergency cleanup for a price of more
19than 10% above the price charged by that person for those
20services immediately prior to the proclamation or declaration
21of emergency. However, a greater price increase is not
22unlawful if that person can prove that the increase in price
23was directly attributable to additional costs imposed on it by
24the supplier of the goods, or directly attributable to
25additional costs for labor or materials used to provide the
26services, during the state of emergency or local emergency,

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1and the price represents no more than 10% greater than the
2total of the cost to the contractor plus the markup
3customarily applied by the contractor for that good or service
4in the usual course of business immediately prior to the onset
5of the state of emergency or local emergency.
6 (e) Upon the proclamation of a state of emergency declared
7by the President of the United States or the Governor, or upon
8the declaration of a local emergency by an official, board, or
9other governing body vested with authority to make that
10declaration in any county, municipality, or municipality and
11county, and for a period of 30 days following that
12proclamation or declaration, it is unlawful for an owner or
13operator of a hotel or motel to increase the hotel or motel's
14regular rates, as advertised immediately prior to the
15proclamation or declaration of emergency, by more than 10%.
16However, a greater price increase is not unlawful if the owner
17or operator can prove that the increase in price is directly
18attributable to additional costs imposed on it for goods or
19labor used in its business, to seasonal adjustments in rates
20that are regularly scheduled, or to previously contracted
21rates.
22 (f) Upon the proclamation of a state of emergency declared
23by the President of the United States or the Governor, or upon
24the declaration of a local emergency by an official, board, or
25other governing body vested with authority to make that
26declaration in any municipality, county, or municipality and

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1county, and for a period of 30 days following that
2proclamation or declaration, or any period the proclamation or
3declaration is extended by the applicable authority, it is
4unlawful for any person, business, or other entity, to
5increase the rental price advertised, offered, or charged for
6housing, to an existing or prospective tenant, by more than
710%. However, a greater rental price increase is not unlawful
8if that person can prove that the increase is directly
9attributable to additional costs for repairs or additions
10beyond normal maintenance that were amortized over the rental
11term that caused the rent to be increased greater than 10% or
12that an increase was contractually agreed to by the tenant
13prior to the proclamation or declaration. It shall not be a
14defense to a prosecution under this subsection that an
15increase in rental price was based on the length of the rental
16term, the inclusion of additional goods or services, except as
17provided under subsection (b) with respect to furniture, or
18that the rent was offered by, or paid by, an insurance company,
19or other third party, on behalf of a tenant. This subsection
20does not authorize a landlord to charge a price greater than
21the amount authorized by a local rent control ordinance.
22 (g) The prohibitions of this Section may be extended for
23additional periods, as needed, by a local legislative body,
24local official, the Governor, or the General Assembly, if
25deemed necessary to protect the lives, property, or welfare of
26the citizens. Each extension by a local legislative body or

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1local official shall not exceed 30 days. An extension may also
2authorize specified price increases that exceed the amount
3that would be permissible under this Section during the
4initial 30 or 180 days after a proclamation or declaration of
5emergency.
6 (h) A violation of this Section constitutes an unlawful
7practice within the meaning of this Act. The remedies provided
8under this Section are cumulative to each other and the
9remedies or penalties available under all other laws of this
10State.
11 (i) A business offering an item for sale, or a service, at
12a reduced price immediately prior to the proclamation or
13declaration of the emergency may use the price it normally
14charges for the item or service to calculate the price
15pursuant to subsection (c) or (d).
16 (j) This Section is inoperative after December 31, 2021.
17 Section 99. Effective date. This Act takes effect upon
18becoming law.
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