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The bill to allow the state to investigate and punish companies that engage in price gouging after disasters won approval in the House Tuesday, Oct. 11. However, the Senate Judiciary Committee tabled it on a 6-4 vote later the same day.
HB9 underwent revisions as it made its way through the House. Changes to the measure made it more acceptable to the oil-and-fuel industry.
The bill would have made it illegal to sell goods or services for an “unconscionable price” after natural disasters or emergencies and the governor has issued an executive order saying a market disruption is likely.
An unconscionable price is defined as being more than 15 percent above the average price charged in the 20 days prior to the order.
Business could apply for exemptions. Their price hikes would be defensible in court if the cost of providing goods or services had gone up, due to local or international conditions.
House lawmakers approved making the attorney general responsible for bringing complaints under the anti-gouging law.
In addition, courts would be allowed to suspend or revoke a business license or bar a business from operation if it engaged in price gouging.
Richardson said in a written statement he was disappointed by the failure of the bill, saying “New Mexicans still have no legal protection against predatory pricing during times of crisis.”
He said he would resurrect the proposal in January.
10/12/05-A bill to allow the state to investigate and punish companies that engage in price gouging after disasters continues to meet obstacles.
The House approved the bill Tuesday, Oct. 11, on a 53-8 vote. However, the Senate Judiciary Committee tabled it on a 6-4 vote later the same day.
Gov. Bill Richardson asked lawmakers to enact the price-gouging legislation when he called them to a special session last week. The governor’s aides said they would continue to lobby senators to support the bill.
The bill – HB9 – underwent revisions as it made its way through the House. Changes to the measure made it more acceptable to the oil-and-fuel industry.
The bill would make it illegal to sell goods or services for an “unconscionable price” after natural disasters or emergencies and the governor has issued an executive order saying a market disruption is likely.
An unconscionable price is defined as being more than 15 percent above the average price charged in the 20 days prior to the order.
Business could apply for exemptions. Their price hikes would be defensible in court if the cost of providing goods or services had gone up, due to local or international conditions.
House lawmakers approved making the attorney general responsible for bringing complaints under the anti-gouging law.
In addition, courts would be allowed to suspend or revoke a business license or bar a business from operation if it engaged in price gouging.
For bill status, call (505) 986-4600.
10/10/05-Legislation offered by Gov. Bill Richardson to allow the state to investigate and punish companies that engage in price gouging after disasters is stalled in committee.
Some state legislators have been critical of its provisions complaining that Richardson had not consulted with economists or other experts to come up with a workable proposal.
The effort to prohibit price gouging during natural disasters or emergencies, such as hurricanes or terrorist attacks, has been temporarily set aside by both the House and Senate judiciary panels. Lawmakers are working to come up with a more palatable plan.
The bill – HB9 – that was shelved would have allowed courts to suspend or revoke a business license or bar a business from operation if it sold goods or services for an “unconscionable price” after a disaster or emergency, The Associated Press reported.
The rule would have applied to goods and services deemed essential in an emergency, such as gasoline, diesel fuel, prescription drugs and bottled water.
Price gouging would have been presumed if prices for essential goods and services increased 10 percent above the average price charged in the 20 days before the disaster or emergency.
Violators would have faced a fine up to $5,000, per occurrence.
It also barred fuel-station owners from raising their prices more than once every 24 hours.