HB442 (2008) Detail

Prohibiting unconscionable prices for essential commodities during a declared state of emergency.


HB 442-FN – AS INTRODUCED

2007 SESSION

07-0359

05/03

HOUSE BILL 442-FN

AN ACT prohibiting unconscionable prices for essential commodities during a declared state of emergency.

SPONSORS: Rep. Osborne, Merr 12; Rep. Theberge, Coos 4; Rep. Marshall Quandt, Rock 13; Rep. Rosenwald, Hills 22; Rep. Matthew Quandt, Rock 13; Sen. Fuller Clark, Dist 24

COMMITTEE: Commerce

ANALYSIS

This bill prohibits unconscionable prices for essential commodities during a declared state of 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0359

05/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT prohibiting unconscionable prices for essential commodities during a declared state of emergency.

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

1 New Chapter; Prohibition Against Unconscionable Prices. Amend RSA by inserting after chapter 359-H the following new chapter:

CHAPTER 359-I

PROHIBITION AGAINST UNCONSCIONABLE PRICES

359-I:1 Definition of Commodity. In this chapter, “commodity” means any goods, services, materials, merchandise, supplies, equipment, resources, or other article of commerce, including food, water, ice, chemicals, petroleum products, lumber, medication, and other medical products, necessary for consumption or use as a direct result of a declared state of emergency.

359-I:2 Unconscionable Prices. It is prima facie evidence that a price is unconscionable if:

I. The amount charged represents a gross disparity between the price of the commodity or rental or lease of any dwelling unit or self-storage facility that is the subject of the offer or transaction and the average price at which that commodity or dwelling unit or self-storage facility was rented, leased, sold, or offered for rent or sale in the usual course of business during the 30 days immediately prior to a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the rental or sale of the commodity or rental or lease of any dwelling unit or self-storage facility, or national or international market trends; or

II. The amount charged grossly exceeds the average price at which the same or similar commodity was readily obtainable in the trade area during the 30 days immediately prior to a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the rental or sale of the commodity or rental or lease of any dwelling unit or self-storage facility, or national or international market trends.

359-I:3 Prohibition on Unconscionable Prices. Upon a declaration of a state of emergency by the governor, it is unlawful for any person, or his or her agent or employee, to rent or sell, or offer to rent or sell, a commodity at an unconscionable price within the area for which the state of emergency is declared. It is also unlawful to impose an unconscionable price for the rental or lease of any dwelling unit or self-storage facility during a period of declared state of emergency. This prohibition remains in effect until the declaration expires or is terminated.

359-I:4 Exemptions. This chapter shall not apply to:

I. A price increase approved by an appropriate government agency.

II. Sales by growers, producers, or processors of raw or processed food products, except for retail sales of such products to the ultimate consumer within the area of the declared state of emergency.

359-I:5 Penalty for Violation. Any violation of this chapter shall constitute an unfair or deceptive act or practice within the meaning of RSA 358-A:2. Any right, remedy, or power set forth in RSA 358-A may be used to enforce the provisions of this chapter.

2 Effective Date. This act shall take effect January 1, 2008.

LBAO

07-0359

1/12/07

HB 442-FN - FISCAL NOTE

AN ACT prohibiting unconscionable prices for essential commodities during a declared state of emergency.

FISCAL IMPACT:

The Judicial Branch, Judicial Council, and Association of Counties states this bill may increase state and county expenditures by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on state, county, and local revenue or local expenditures.

METHODOLOGY:

The Judicial Branch states this bill would make it unlawful to sell commodities during a declared state of emergency for an unconscionable price as defined in the statute. The penalty for a statutory violation is a violation of the Consumer Protection Act. The Branch states Consumer Protection Act claims are often hard-fought and carry with them the potential for enforcement actions by the attorney general, criminal prosecution, and private actions with the potential of up to treble damages. The Branch has no information on which to estimate the potential volume of cases that could arise as a result of this bill, and are unable to estimate the exact fiscal impact at this time.

The Judicial Council assumes that any cases arising from the enactment of this bill for which the Indigent Defense Fund may be liable will, in the first instance, be handled by the public defender or contract attorney who accepts these cases on a fixed fee basis of $275 per misdemeanor charged. If an assigned counsel attorney must be used, the hourly rate of $60 with a fee cap of $1,000 will apply. If a motion to exceed the fee cap is approved and/or “services other than counsel” are approved, these will also be chargeable to the Indigent Defense Fund. The Council is unable to predict the number of cases which may result from the passage of this bill, and are unable to determine the exact fiscal impact at this time.

The New Hampshire Association of Counties is unable to determine the fiscal impact at this time. The average annual cost to the counties to incarcerate an individual is $22,889.

The Department of Justice states any increase in cases can be absorbed by the Department.

LBAO

07-0359

1/12/07

The Department of Corrections states this bill will have no fiscal impact on the Department since the offense is a misdemeanor.