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Introduced Version - Originating in Committee House Bill 4620 History

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Key: Green = existing Code. Red = new code to be enacted

H. B. 4620

 

(By Delegates Manchin, Longstreth, Hunt and Skinner)

 

(Originating in the Committee on the Judiciary)

 

[February 21, 2014]

 

 

A BILL to amend and reenact §46A-6J-3 of the Code of West Virginia, 1931, as amended, relating to protection of consumers from price gouging and unfair trade practices; and lowering maximum allowed price increases on the sale of certain goods and services following establishment of a “state of emergency.”

Be it enacted by the Legislature of West Virginia:

     That §46A-6J-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted, to read as follows:

ARTICLE 6J. PROTECTION OF CONSUMERS FROM PRICE GOUGING AND UNFAIR PRICING PRACTICES DURING AND SHORTLY AFTER A STATE OF EMERGENCY.

§46A-6J-3. Prohibited unfair pricing practices.

     (a) Upon the declaration of a state of emergency and continuing for the existence of the state of emergency or for thirty days following the declaration, whichever period is longer, it is unlawful for any person, contractor, business, or other entity to sell or offer to sell to any person in the area subject to the declaration any consumer food items, essential consumer items, goods 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 greater than ten three percent above the price charged by that person for those goods or services on the tenth day immediately preceding the declaration of emergency, unless the increase in price is directly attributable to additional costs imposed on the seller by the supplier of the goods or directly attributable to additional costs for labor or materials used to provide the services: Provided, That in those situations where the increase in price is attributable to additional costs imposed by the seller’s supplier or additional costs of providing the good or service during the state of emergency, the price is no greater than ten three percent above 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 on the tenth day immediately preceding the declaration: Provided, however, That where a supplier of gasoline or other motor fuels cannot determine their daily costs, the supplier may sell gasoline or other motor fuels to distributers on any day at a rate not to exceed the average of the Oil Price Information Service’s average wholesale rack price for that product at the Montvale/Roanoke, Virginia, Fairfax, Virginia and Pittsburgh, Pennsylvania wholesale racks for the previous day.

     (b) Upon the declaration of a state of emergency, and for a period of one hundred eighty days following that declaration, it is unlawful for any contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup in the area subject to the declaration for a price greater than ten three percent above the price charged by that person for those services on the tenth day immediately preceding the declaration, unless 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: Provided, That in those situations where the increase in price is attributable to the additional costs imposed by the contractor's supplier or additional costs of providing the service, the price is no greater than ten three percent above the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business on the tenth day immediately preceding to the declaration of the state of emergency.

     (c) Any business offering an item for sale at a reduced price ten days immediately prior to the declaration of the state of emergency may use the price at which it usually sells the item to calculate the price pursuant to subsection (a) or (b) of this section.

     (d) The price restrictions imposed by this article may be limited or terminated by proclamation of the Governor.

 

     NOTE: The purpose of this bill is to lower the amount the prices of goods and services can be increased for a period following the establishment of a state of emergency.


     Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

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