Bill Text: MI HB5714 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Trade; business practices; price gouging during state of emergency or disaster; prohibit for certain goods and services. Amends sec. 7 of 1984 PA 274 (MCL 445.777) & adds secs. 3a & 3b. TIE BAR WITH: HB 5715'18

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-03-14 - Bill Electronically Reproduced 03/13/2018 [HB5714 Detail]

Download: Michigan-2017-HB5714-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5714

 

 

March 13, 2018, Introduced by Reps. Moss, Elder, Sowerby, Chang, Lucido, Geiss, Hertel and Faris and referred to the Committee on Oversight.

 

     A bill to amend 1984 PA 274, entitled

 

"Michigan antitrust reform act,"

 

by amending section 7 (MCL 445.777) and by adding sections 3a and

 

3b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3a. As used in this section and sections 3b and 3c:

 

     (a) "Building materials" means lumber, construction tools,

 

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

 

property.

 

     (b) "Consumer food item" means any article that is used or

 

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

 

individual or animal.

 

     (c) "Emergency supplies" includes, but is not limited to,

 

water, flashlights, radios, batteries, candles, blankets, soap,

 


diapers, temporary shelters, tape, toiletries, plywood, nails, and

 

hammers.

 

     (d) "Gasoline" means any fuel used to power any motor vehicle

 

or power tool.

 

     (e) "Goods" means any tangible property, coupons, or

 

certificates, whether bought or leased.

 

     (f) "Housing" means any rental housing and includes any

 

housing provided by a hotel or motel.

 

     (g) "Local emergency" means a natural or man-made disaster or

 

emergency resulting from a tornado, earthquake, flood, fire, riot,

 

or storm for which a local emergency is declared by the executive

 

officer or governing body of any city or county in this state.

 

     (h) "Medical supplies" includes, but is not limited to,

 

prescription and nonprescription medications, bandages, gauze,

 

isopropyl alcohol, and antibacterial products.

 

     (i) "Person" means an individual, partnership, corporation,

 

limited liability company, association, trust, estate, or other

 

legal entity.

 

     (j) "Services" means any work, labor, or services including

 

services furnished in connection with the sale or repair of goods

 

or real property or improvements to real property.

 

     (k) "State of emergency" means a natural or man-made disaster

 

or emergency resulting from a tornado, earthquake, flood, fire,

 

riot, storm, act of war, threat of war, military action, or the

 

time of instability following a terrorist attack for which a state

 

of emergency is declared by the President of the United States or

 

the governor. The term includes the time period of any of the


following:

 

     (i) An imminent alert issued in the National Terrorism

 

Advisory System by the United States Department of Homeland

 

Security.

 

     (ii) A severe weather warning issued by the National Weather

 

Service.

 

     (iii) A state of emergency or state of disaster declared by

 

the governor under the emergency management act, 1976 PA 390, MCL

 

30.401 to 30.421; a state of emergency declared by the governor

 

under 1945 PA 302, MCL 10.31 to 10.33; or a state of energy

 

emergency declared by the governor under 1982 PA 191, MCL 10.81 to

 

10.89.

 

     (l) "Transportation, freight, and storage services" means any

 

service that is performed by any person that contracts to move,

 

store, or transport personal or business property or rents

 

equipment for those purposes.

 

     Sec. 3b. (1) Subject to subsection (2), during the time period

 

of a declared state of emergency or a local emergency, and for 30

 

days after that time period, a contractor, business, or other

 

person shall not sell or offer to sell 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 for a price that exceeds the highest price

 

charged by that person for those goods or services in the 180-day

 

period preceding the declaration of the state of emergency or local

 

emergency.


     (2) Subsection (1) does not apply to a price increase by a

 

person selling or offering to sell goods and services that is

 

otherwise prohibited under subsection (1) if both of the following

 

are met:

 

     (a) The person can prove that the increase in price was

 

directly attributable to additional costs imposed on it by the

 

supplier of the goods or directly attributable to additional costs

 

for labor or materials used to provide the services.

 

     (b) If the increase in price is attributable to additional

 

costs imposed by the person's supplier or additional costs of

 

providing the good or service during the state of emergency or

 

local emergency, the price represents not more than the total of

 

the cost to the seller plus the markup customarily applied by the

 

seller for that good or service in the usual course of business

 

immediately before the onset of the state of emergency or local

 

emergency.

 

     Sec. 7. The attorney general or a prosecuting attorney, with

 

the permission of, or at the request of, the attorney general, may

 

bring an action for appropriate injunctive or other equitable

 

relief and civil penalties fines in the name of the state for a

 

violation of this act. The court may assess for benefit of the

 

state a civil penalty fine in 1 of the following amounts for a

 

violation of this act:

 

     (a) Except as provided in subdivision (b), a civil fine of not

 

more than $50,000.00 for each violation of this act.

 

     (b) For violations of section 3b or 3c, a civil fine of not

 

more than $25,000.00 for each violation.


     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5715 (request no.

 

03420'17) of the 99th Legislature is enacted into law.

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