Illinois-2021-HB4060-Introduced

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

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1 AN ACT concerning business.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Consumer Fraud and Deceptive Business

5 Practices 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

9 emergency or local emergency, including, but not limited to,

10 an earthquake, flood, fire, riot, storm, drought, plant or

11 animal infestation or disease, pandemic or epidemic disease

12 outbreak, or other natural or manmade disaster, some merchants

13 have taken unfair advantage of consumers by greatly increasing

14 prices for essential consumer goods and services. While the

15 pricing of consumer goods and services is generally best left

16 to the marketplace under ordinary conditions, when a declared

17 state of emergency or local emergency results in abnormal

18 disruptions of the market, the public interest requires that

19 excessive and unjustified increases in the prices of essential

20 consumer goods and services be prohibited. It is the intent of

21 the General Assembly in enacting this amendatory Act of the

22 102nd General Assembly to protect citizens from excessive and

23 unjustified increases in the prices charged during or shortly

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1 after a declared state of emergency or local emergency for

2 goods and services that are vital and necessary for the

3 health, safety, and welfare of consumers, whether those goods

4 and services are offered or sold in person, in stores, or

5 online. Further, it is the intent of the General Assembly that

6 this Section be liberally construed so that its beneficial

7 purposes may be served.

8 (b) In this Section:

9 "Building materials" means lumber, construction tools,

10 windows, and anything else used in the building or rebuilding

11 of property.

12 "Consumer food item" means any article that is used or

13 intended for use for food, drink, confection, or condiment by

14 a person or animal.

15 "Cost" as applied to production includes the cost of raw

16 materials, labor and all overhead expenses of the producer.

17 "Cost" as applied to distribution means the invoice or

18 replacement cost, whichever is lower, of the article or

19 product to the distributor and vendor, plus the cost of doing

20 business by the distributor and vendor and in the absence of

21 proof of cost of doing business a markup of 6% on such invoice

22 or replacement cost shall be prima facie proof of such cost of

23 doing business.

24 "Emergency supplies" includes, but is not limited to,

25 water, flashlights, radios, batteries, candles, blankets,

26 soaps, diapers, temporary shelters, tape, toiletries, plywood,

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1 nails, and hammers.

2 "Gasoline" means any fuel used to power any motor vehicle

3 or power tool.

4 "Goods" means tangible chattels bought for use primarily

5 for personal, family, or household purposes, including

6 certificates or coupons exchangeable for these goods, and

7 including goods that, at the time of the sale or subsequently,

8 are to be so affixed to real property as to become a part of

9 the real property whether or not severable therefrom, but does

10 not include any vehicle required to be registered under the

11 Illinois Vehicle Code, nor any goods sold with the vehicle,

12 and does not include any mobile home, as defined in the Mobile

13 Home Park Act, nor any goods sold with the mobile home.

14 "Local emergency" means a natural or manmade emergency

15 resulting from an earthquake, flood, fire, riot, storm,

16 drought, plant or animal infestation or disease, pandemic or

17 epidemic disease outbreak, or other natural or manmade

18 disaster for which a local emergency has been declared by an

19 official, board, or other governing body vested with authority

20 to make that declaration in any county, municipality, or

21 municipality and county in this State.

22 "Medical supplies" includes, but is not limited to,

23 prescription and nonprescription medications, bandages, gauze,

24 isopropyl alcohol, and antibacterial products.

25 "Repair or reconstruction services" means services

26 performed by any person who is required to be licensed under

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1 State law or a local ordinance, for repairs to residential or

2 commercial property of any type that is damaged as a result of

3 a 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

21 resulting from an earthquake, flood, fire, riot, storm,

22 drought, plant or animal infestation or disease, pandemic or

23 epidemic disease outbreak, or other natural or manmade

24 disaster for which a state of emergency has been declared by

25 the President of the United States or the Governor.

26 "Transportation, freight, and storage services" means any

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1 service that is performed by any company that contracts to

2 move, store, or transport personal or business property or

3 that rents equipment for those purposes, including towing

4 services.

5 (c) Upon the proclamation of a state of emergency declared

6 by the President of the United States or the Governor, or upon

7 the declaration of a local emergency by an official, board, or

8 other governing body vested with authority to make that

9 declaration in any county, municipality, or municipality and

10 county, and for a period of 30 days following that

11 proclamation or declaration, it is unlawful for a person,

12 contractor, business, or other entity to sell or offer to sell

13 any consumer food items or goods, goods or services used for

14 emergency cleanup, emergency supplies, medical supplies, home

15 heating oil, building materials, housing, transportation,

16 freight, and storage services, or gasoline or other motor

17 fuels for a price of more than 10% greater than the price

18 charged by that person for those goods or services immediately

19 prior to the proclamation or declaration of emergency, or

20 prior to a date set in the proclamation or declaration.

21 However, a greater price increase is not unlawful if that

22 person can prove that the increase in price was directly

23 attributable to additional costs imposed on it by the supplier

24 of the goods, or directly attributable to additional costs for

25 labor or materials used to provide the services, during the

26 state of emergency or local emergency, and the price is no more

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1 than 10% greater than the total of the cost to the seller plus

2 the markup customarily applied by that seller for that good or

3 service in the usual course of business immediately prior to

4 the onset of the state of emergency or local emergency. If the

5 person, contractor, business, or other entity did not charge a

6 price for the goods or services immediately prior to the

7 proclamation or declaration of emergency, it may not charge a

8 price that is more than 50% greater than the cost thereof to

9 the vendor.

10 (d) Upon the proclamation of a state of emergency declared

11 by the President of the United States or the Governor, or upon

12 the declaration of a local emergency by an official, board, or

13 other governing body vested with authority to make that

14 declaration in any county, municipality, or municipality and

15 county, and for a period of 180 days following that

16 proclamation or declaration, it is unlawful for a contractor

17 to sell or offer to sell any repair or reconstruction services

18 or any services used in emergency cleanup for a price of more

19 than 10% above the price charged by that person for those

20 services immediately prior to the proclamation or declaration

21 of emergency. However, a greater price increase is not

22 unlawful if that person can prove that the increase in price

23 was directly attributable to additional costs imposed on it by

24 the supplier of the goods, or directly attributable to

25 additional costs for labor or materials used to provide the

26 services, during the state of emergency or local emergency,

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1 and the price represents no more than 10% greater than the

2 total of the cost to the contractor plus the markup

3 customarily applied by the contractor for that good or service

4 in the usual course of business immediately prior to the onset

5 of the state of emergency or local emergency.

6 (e) Upon the proclamation of a state of emergency declared

7 by the President of the United States or the Governor, or upon

8 the declaration of a local emergency by an official, board, or

9 other governing body vested with authority to make that

10 declaration in any county, municipality, or municipality and

11 county, and for a period of 30 days following that

12 proclamation or declaration, it is unlawful for an owner or

13 operator of a hotel or motel to increase the hotel or motel's

14 regular rates, as advertised immediately prior to the

15 proclamation or declaration of emergency, by more than 10%.

16 However, a greater price increase is not unlawful if the owner

17 or operator can prove that the increase in price is directly

18 attributable to additional costs imposed on it for goods or

19 labor used in its business, to seasonal adjustments in rates

20 that are regularly scheduled, or to previously contracted

21 rates.

22 (f) Upon the proclamation of a state of emergency declared

23 by the President of the United States or the Governor, or upon

24 the declaration of a local emergency by an official, board, or

25 other governing body vested with authority to make that

26 declaration in any municipality, county, or municipality and

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1 county, and for a period of 30 days following that

2 proclamation or declaration, or any period the proclamation or

3 declaration is extended by the applicable authority, it is

4 unlawful for any person, business, or other entity, to

5 increase the rental price advertised, offered, or charged for

6 housing, to an existing or prospective tenant, by more than

7 10%. However, a greater rental price increase is not unlawful

8 if that person can prove that the increase is directly

9 attributable to additional costs for repairs or additions

10 beyond normal maintenance that were amortized over the rental

11 term that caused the rent to be increased greater than 10% or

12 that an increase was contractually agreed to by the tenant

13 prior to the proclamation or declaration. It shall not be a

14 defense to a prosecution under this subsection that an

15 increase in rental price was based on the length of the rental

16 term, the inclusion of additional goods or services, except as

17 provided under subsection (b) with respect to furniture, or

18 that the rent was offered by, or paid by, an insurance company,

19 or other third party, on behalf of a tenant. This subsection

20 does not authorize a landlord to charge a price greater than

21 the amount authorized by a local rent control ordinance.

22 (g) The prohibitions of this Section may be extended for

23 additional periods, as needed, by a local legislative body,

24 local official, the Governor, or the General Assembly, if

25 deemed necessary to protect the lives, property, or welfare of

26 the citizens. Each extension by a local legislative body or

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1 local official shall not exceed 30 days. An extension may also

2 authorize specified price increases that exceed the amount

3 that would be permissible under this Section during the

4 initial 30 or 180 days after a proclamation or declaration of

5 emergency.

6 (h) A violation of this Section constitutes an unlawful

7 practice within the meaning of this Act. The remedies provided

8 under this Section are cumulative to each other and the

9 remedies or penalties available under all other laws of this

10 State.

11 (i) A business offering an item for sale, or a service, at

12 a reduced price immediately prior to the proclamation or

13 declaration of the emergency may use the price it normally

14 charges for the item or service to calculate the price

15 pursuant 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

18 becoming law.