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 - Dead) 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.
