| 1 | A bill to be entitled |
| 2 | An act relating to price gouging during a declared state |
| 3 | of emergency; creating s. 501.161, F.S.; providing |
| 4 | legislative findings and intent; providing definitions; |
| 5 | prohibiting price gouging during a declared state of |
| 6 | emergency; providing penalties; providing an effective |
| 7 | date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Section 501.161, Florida Statutes, is created |
| 12 | to read: |
| 13 | 501.161 Price gouging during a declared state of |
| 14 | emergency.-- |
| 15 | (1) The Legislature finds that: |
| 16 | (a) During emergencies and major disasters affecting the |
| 17 | health, safety, and welfare of persons in this state, some |
| 18 | individuals and merchants have taken unfair advantage of |
| 19 | consumers by greatly increasing prices for essential equipment, |
| 20 | commodities, or accommodations. |
| 21 | (b) Pricing of essential equipment, commodities, or |
| 22 | accommodations is generally best left to the marketplace under |
| 23 | ordinary conditions, but during a state of emergency declared by |
| 24 | the Governor price gouging must be discouraged. |
| 25 | (2) It is the intent of the Legislature to protect |
| 26 | consumers from excessive and unjustified increases in the prices |
| 27 | charged during a declared state of emergency for essential |
| 28 | equipment, commodities, or accommodations and to punish any |
| 29 | person who is found guilty of price gouging consumers within the |
| 30 | state during a declared state of emergency. |
| 31 | (3) For purposes of this section, the term: |
| 32 | (a) "Essential equipment, commodities, or accommodations" |
| 33 | means any goods, services, materials, merchandise, supplies, |
| 34 | equipment, resources, or other article of commerce, including, |
| 35 | but not limited to, food, water, ice, chemicals, petroleum |
| 36 | products, and lumber, necessary for consumption or use as a |
| 37 | direct result of the state of emergency. The term also includes |
| 38 | any temporary accommodation, such as a hotel, motel, other |
| 39 | transient lodging facility, or residential accommodation, sought |
| 40 | by persons seeking shelter during the state of emergency. |
| 41 | (b) "Price gouging" means knowingly renting or selling, or |
| 42 | attempting or offering to rent or sell, essential equipment, |
| 43 | commodities, or accommodations, whose consumption or use is |
| 44 | necessary because of the emergency, at an unconscionable price |
| 45 | during a declared state of emergency, unless such increase in |
| 46 | price is caused by actual costs incurred in connection with such |
| 47 | essential equipment, commodities, or accommodations. |
| 48 | (c) "Unconscionable price" means a price equaling or |
| 49 | exceeding 110 percent of the average price charged for such |
| 50 | essential equipment, commodities, or accommodations during the |
| 51 | 30 days immediately prior to a declaration of the state of |
| 52 | emergency. |
| 53 | (4)(a) It is unlawful for any person in the state to |
| 54 | engage in price gouging during a declared state of emergency. |
| 55 | (b) Any person who knowingly violates paragraph (a) |
| 56 | commits a misdemeanor of the second degree, punishable by |
| 57 | imprisonment of up to 60 days or a fine of up to $500, or both. |
| 58 | If a person in violation of paragraph (a) illegally received |
| 59 | $300 or more as a result of his or her price gouging, he or she |
| 60 | commits a misdemeanor of the first degree, punishable by |
| 61 | imprisonment of up to 1 year or a fine of up to $1,000, or both. |
| 62 | Section 2. This act shall take effect July 1, 2005. |