Senate Bill 1930c1

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    Florida Senate - 2000                           CS for SB 1930

    By the Committee on Regulated Industries and Senator Carlton





    315-1834A-00

  1                      A bill to be entitled

  2         An act relating to consumer price gouging in

  3         emergencies; amending s. 501.160, F.S.; adding

  4         building materials and public lodging to the

  5         definition of commodity; providing for

  6         enforcement by the Department of Business and

  7         Professional Regulation; providing an effective

  8         date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  Section 501.160, Florida Statutes, is

13  amended to read:

14         501.160  Rental or sale of essential commodities during

15  a declared state of emergency; prohibition against

16  unconscionable prices.--

17         (1)  As used in this section:

18         (a)  "Commodity" means any goods, services, materials,

19  merchandise, supplies, equipment, resources, or other article

20  of commerce, and includes, without limitation, food, water,

21  ice, chemicals, petroleum products, building materials, and

22  public lodging and lumber necessary for consumption or use as

23  a direct result of the emergency.

24         (b)  It is prima facie evidence that a price is

25  unconscionable if:

26         1.  The amount charged represents a gross disparity

27  between the price of the commodity or rental or lease of any

28  dwelling unit or self-storage facility that is the subject of

29  the offer or transaction and the average price at which that

30  commodity or dwelling unit or self-storage facility was

31  rented, leased, sold, or offered for rent or sale in the usual

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    Florida Senate - 2000                           CS for SB 1930
    315-1834A-00




  1  course of business during the 30 days immediately prior to a

  2  declaration of a state of emergency or ordered evacuation, and

  3  the increase in the amount charged is not attributable to

  4  additional costs incurred in connection with the rental or

  5  sale of the commodity or rental or lease of any dwelling unit

  6  or self-storage facility, or national or international market

  7  trends; or

  8         2.  The amount charged grossly exceeds the average

  9  price at which the same or similar commodity was readily

10  obtainable in the trade area during the 30 days immediately

11  prior to a declaration of a state of emergency or ordered

12  evacuation, and the increase in the amount charged is not

13  attributable to additional costs incurred in connection with

14  the rental or sale of the commodity or rental or lease of any

15  dwelling unit or self-storage facility, or national or

16  international market trends.

17         (2)  Upon a declaration of a state of emergency by the

18  Governor or ordered evacuation, it is unlawful and a violation

19  of s. 501.204 for a person or her or his agent or employee to

20  rent or sell or offer to rent or sell at an unconscionable

21  price within the area for which the state of emergency is

22  declared, any essential commodity including, but not limited

23  to, supplies, services, provisions, or equipment that is

24  necessary for consumption or use as a direct result of the

25  emergency.  This prohibition remains in effect until the

26  declaration expires or is terminated.

27         (3)  It is unlawful and a violation of s. 501.204 for

28  any person to impose unconscionable prices for the rental or

29  lease of any dwelling unit or self-storage facility during a

30  period of declared state of emergency.

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    Florida Senate - 2000                           CS for SB 1930
    315-1834A-00




  1         (4)  A price increase approved by an appropriate

  2  government agency shall not be a violation of this section.

  3  This exemption does not apply to room rates posted in

  4  accordance with s. 509.201.

  5         (5)  This section shall not apply to sales by growers,

  6  producers, or processors of raw or processed food products,

  7  except for retail sales of such products to the ultimate

  8  consumer within the area of the declared state of emergency.

  9         (6)  Nothing herein shall be interpreted to preempt the

10  powers of local government except that the evidentiary

11  standards and defenses contained in this section shall be the

12  only evidentiary standards and defenses used in any ordinance

13  adopted by local government to restrict price gouging during a

14  declared state of emergency.

15         (7)  The Department of Business and Professional

16  Regulation may enforce this section as it applies to any

17  business or profession within its jurisdiction.

18         (8)(7)  Section 501.211 notwithstanding, nothing in

19  this section creates a private cause of action in favor of any

20  person damaged by a violation of this section.

21         Section 2.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                           CS for SB 1930
    315-1834A-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 1930

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            The Committee Substitute for Senate Bill 1930:
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    -     Clarifies that the definition of "commodity" in s.
  5        501.160, F.S.,includes public lodging and building
          materials;
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    -     Deletes provisions that would have amended chapter 509,
  7        F.S., to regulate rates charged by public lodging
          establishments during a declared emergency, and to
  8        prohibit minimum stay requirements;

  9  -     Provides for enforcement by the Department of Business
          and Professional Regulation of the provisions in s.
10        501.160, F.S., that apply to any business or profession
          within its jurisdiction.
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