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House File 2503 - IntroducedA Bill ForAn Act 1relating to price increases for goods, services, and
2lodging occurring during a declared emergency, and providing
3penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714.16D Declared emergencies —
2maximum lawful prices.
31. As used in this section, unless the context otherwise
4requires:
5a. “Building materials” means lumber, construction tools,
6windows, and other items used in building or rebuilding
7property.
8b. “Consumer food items” means the same as “food” as defined
9in section 137F.1.
10c. “Declared emergency” includes a “disaster” as defined
11in section 29C.2, and “public health disaster” as defined in
12section 135.140, as declared by the governor or other state or
13local official with declaration authority.
14d. “Emergency supplies” includes water, flashlights,
15radios, batteries, candles, blankets, soaps, diapers, temporary
16shelters, tape, toilet paper, tissues, paper towels, gasoline
17generators, chainsaws, food coolers, tarps, charcoal, propane
18tanks, toiletries, plywood, nails, and hammers.
19e. “Fuel” means any energy source used to power a motor
20vehicle or power tool including gasoline and propane.
21f. “Medical supplies” includes prescription and
22nonprescription medications, bandages, gauze, isopropyl
23alcohol, and antibacterial products.
24g. “Repair or reconstruction services” means services
25performed by any person who is required to be licensed under
26the state for repairs to residential or commercial property
27that is damaged as a result of the disaster.
28h. “Transportation, freight, and storage services” means
29services performed by a company to move, store, or transport
30personal or business property or that rents equipment for those
31purposes, including towing services.
322. a. During a declared emergency and for a period of
33thirty days following the end of the declared emergency, a
34person or business shall not sell or offer to sell building
35materials, consumer food items, emergency supplies, fuel,
-1-1home heating oil, medical supplies, repair or reconstruction
2services, or transportation, freight, and storage services for
3a price of more than ten percent above the price charged by
4that person or business for those goods or services immediately
5prior to the declared emergency.
6b. A person or business not engaged in selling building
7materials, consumer food items, emergency supplies, fuel,
8home heating oil, medical supplies, repair or reconstruction
9services, or transportation, freight, and storage services
10immediately prior to the declared emergency shall not charge a
11customer more than ten percent above the average price charged
12in the state for the same good or service immediately prior to
13the declared emergency.
14c. A seller may increase the price of building materials,
15consumer food items, emergency supplies, fuel, home heating
16oil, medical supplies, repair or reconstruction services, or
17transportation, freight, and storage services greater than ten
18percent if the seller can prove either of the following:
19(1) The price increase is directly attributable to
20additional costs the supplier of the goods imposed on the
21seller.
22(2) The price increase is directly attributable to
23additional costs for labor or materials used to provide the
24services.
25d. Where a seller increases the price of building materials,
26consumer food items, emergency supplies, fuel, home heating
27oil, medical supplies, repair or reconstruction services, or
28transportation, freight, and storage services pursuant to
29paragraph “c”, the increase in price shall not be greater than
30ten percent of the total cost to the seller plus the amount of a
31customary markup applied in the usual course of business prior
32to the declared emergency.
33e. A seller offering building materials, consumer food
34items, emergency supplies, fuel, home heating oil, medical
35supplies, repair or reconstruction services, or transportation,
-2-1freight, and storage services on a discounted sales price prior
2to the declared emergency may use the nonsale price of the
3goods or services for purposes of this subsection.
43. During a declared emergency and for a period of thirty
5days following the end of the declared emergency, an owner or
6operator of a hotel, motel, or other lodging or room service
7shall not increase regular rates advertised immediately prior
8to the declared emergency greater than ten percent. An owner
9or operator may increase the price if the increase is directly
10attributable to additional costs imposed on the owner or
11operator for goods or services used in the regular course of
12business, including seasonal adjustments in rates.
134. The provisions in this section may be extended as
14necessary for an additional thirty-day period by the governor,
15public elected official, or the general assembly.
165. A violation of this section is a serious misdemeanor
17punishable by imprisonment not exceeding one year and a fine
18not exceeding ten thousand dollars, or both. A violation of
19this section constitutes an unlawful practice pursuant to
20section 714.16.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill relates to price increases for goods, services,
25and lodging occurring during a declared emergency.
26The bill defines “building materials” to mean lumber,
27construction tools, windows, and other items used in building
28or rebuilding property. The bill defines “declared emergency”
29to include a “disaster” as defined in Code section 29C.2, and
30“public health disaster” as defined in Code section 135.140, as
31declared by the governor or other state or local official with
32declaration authority. The bill defines “emergency supplies”
33to include water, flashlights, radios, batteries, candles,
34blankets, soaps, diapers, temporary shelters, tape, toilet
35paper, tissues, paper towels, gasoline generators, chainsaws,
-3-1food coolers, tarps, charcoal, propane tanks, toiletries,
2plywood, nails, and hammers.
3The bill provides that during a declared emergency and for 30
4days following the end of the declared emergency, a person or
5business shall not sell or offer to sell building materials,
6consumer food items, emergency supplies, fuel, home heating
7oil, medical supplies, repair or reconstruction services, or
8transportation, freight, and storage services for a price of
9more than 10 percent above the price charged by that person
10or business for the same items or services immediately prior
11to the declared emergency. The bill provides that a person
12or business not engaged in selling certain goods or services
13immediately prior to the declared emergency shall not charge a
14customer more than 10 percent above the average price charged
15in the state for the same good or service immediately prior to
16the declared emergency.
17The bill provides that a seller may increase the price of
18certain goods or services greater than 10 percent if the seller
19can prove that the price increase is directly attributable to
20costs imposed by the supplier of the goods or costs for labor
21or materials used to provide the services. The increase in
22price shall not be greater than 10 percent of the total cost to
23the seller plus the amount of a customary markup applied in the
24usual course of business prior to the declared emergency.
25The bill provides that a seller offering certain goods or
26services for a sale price prior to the declared emergency may
27use the nonsale price of the good or service for purposes of
28calculating price increases under the bill.
29The bill provides that during a declared emergency and for 30
30days following the end of the declared emergency, an owner or
31operator of a hotel, motel, or other lodging or room service
32shall not increase regular rates advertised immediately prior
33to the declared emergency greater than 10 percent, but may
34increase the price if the increase is directly related to costs
35imposed on the owner or operator for goods or services used in
-4-1the regular course of business.
2The bill provides that cost controls established by the bill
3may be extended as necessary for an additional 30-day period by
4the governor, public elected official, or the general assembly.
5The bill provides that a violation of the provisions of the
6bill is a serious misdemeanor punishable by imprisonment not
7exceeding one year, a fine not exceeding $10,000, or both. The
8attorney general may prosecute violations of the bill as an
9unlawful practice under Code section 714.16 (consumer frauds).
10Under current administrative law, a seller is prohibited
11from charging an excessive price for merchandise needed by
12disaster victims during and for a period following a disaster
13(61 IAC 31.1). A violation of the administrative law is an
14unfair practice under Code section 714.16. Merchandise needed
15by disaster victims includes water, food, medicines, sanitation
16supplies, utilities, building materials, and materials, goods,
17or services for cleanup or repair.
-5-es/jh
2lodging occurring during a declared emergency, and providing
3penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714.16D Declared emergencies —
2maximum lawful prices.
31. As used in this section, unless the context otherwise
4requires:
5a. “Building materials” means lumber, construction tools,
6windows, and other items used in building or rebuilding
7property.
8b. “Consumer food items” means the same as “food” as defined
9in section 137F.1.
10c. “Declared emergency” includes a “disaster” as defined
11in section 29C.2, and “public health disaster” as defined in
12section 135.140, as declared by the governor or other state or
13local official with declaration authority.
14d. “Emergency supplies” includes water, flashlights,
15radios, batteries, candles, blankets, soaps, diapers, temporary
16shelters, tape, toilet paper, tissues, paper towels, gasoline
17generators, chainsaws, food coolers, tarps, charcoal, propane
18tanks, toiletries, plywood, nails, and hammers.
19e. “Fuel” means any energy source used to power a motor
20vehicle or power tool including gasoline and propane.
21f. “Medical supplies” includes prescription and
22nonprescription medications, bandages, gauze, isopropyl
23alcohol, and antibacterial products.
24g. “Repair or reconstruction services” means services
25performed by any person who is required to be licensed under
26the state for repairs to residential or commercial property
27that is damaged as a result of the disaster.
28h. “Transportation, freight, and storage services” means
29services performed by a company to move, store, or transport
30personal or business property or that rents equipment for those
31purposes, including towing services.
322. a. During a declared emergency and for a period of
33thirty days following the end of the declared emergency, a
34person or business shall not sell or offer to sell building
35materials, consumer food items, emergency supplies, fuel,
-1-1home heating oil, medical supplies, repair or reconstruction
2services, or transportation, freight, and storage services for
3a price of more than ten percent above the price charged by
4that person or business for those goods or services immediately
5prior to the declared emergency.
6b. A person or business not engaged in selling building
7materials, consumer food items, emergency supplies, fuel,
8home heating oil, medical supplies, repair or reconstruction
9services, or transportation, freight, and storage services
10immediately prior to the declared emergency shall not charge a
11customer more than ten percent above the average price charged
12in the state for the same good or service immediately prior to
13the declared emergency.
14c. A seller may increase the price of building materials,
15consumer food items, emergency supplies, fuel, home heating
16oil, medical supplies, repair or reconstruction services, or
17transportation, freight, and storage services greater than ten
18percent if the seller can prove either of the following:
19(1) The price increase is directly attributable to
20additional costs the supplier of the goods imposed on the
21seller.
22(2) The price increase is directly attributable to
23additional costs for labor or materials used to provide the
24services.
25d. Where a seller increases the price of building materials,
26consumer food items, emergency supplies, fuel, home heating
27oil, medical supplies, repair or reconstruction services, or
28transportation, freight, and storage services pursuant to
29paragraph “c”, the increase in price shall not be greater than
30ten percent of the total cost to the seller plus the amount of a
31customary markup applied in the usual course of business prior
32to the declared emergency.
33e. A seller offering building materials, consumer food
34items, emergency supplies, fuel, home heating oil, medical
35supplies, repair or reconstruction services, or transportation,
-2-1freight, and storage services on a discounted sales price prior
2to the declared emergency may use the nonsale price of the
3goods or services for purposes of this subsection.
43. During a declared emergency and for a period of thirty
5days following the end of the declared emergency, an owner or
6operator of a hotel, motel, or other lodging or room service
7shall not increase regular rates advertised immediately prior
8to the declared emergency greater than ten percent. An owner
9or operator may increase the price if the increase is directly
10attributable to additional costs imposed on the owner or
11operator for goods or services used in the regular course of
12business, including seasonal adjustments in rates.
134. The provisions in this section may be extended as
14necessary for an additional thirty-day period by the governor,
15public elected official, or the general assembly.
165. A violation of this section is a serious misdemeanor
17punishable by imprisonment not exceeding one year and a fine
18not exceeding ten thousand dollars, or both. A violation of
19this section constitutes an unlawful practice pursuant to
20section 714.16.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill relates to price increases for goods, services,
25and lodging occurring during a declared emergency.
26The bill defines “building materials” to mean lumber,
27construction tools, windows, and other items used in building
28or rebuilding property. The bill defines “declared emergency”
29to include a “disaster” as defined in Code section 29C.2, and
30“public health disaster” as defined in Code section 135.140, as
31declared by the governor or other state or local official with
32declaration authority. The bill defines “emergency supplies”
33to include water, flashlights, radios, batteries, candles,
34blankets, soaps, diapers, temporary shelters, tape, toilet
35paper, tissues, paper towels, gasoline generators, chainsaws,
-3-1food coolers, tarps, charcoal, propane tanks, toiletries,
2plywood, nails, and hammers.
3The bill provides that during a declared emergency and for 30
4days following the end of the declared emergency, a person or
5business shall not sell or offer to sell building materials,
6consumer food items, emergency supplies, fuel, home heating
7oil, medical supplies, repair or reconstruction services, or
8transportation, freight, and storage services for a price of
9more than 10 percent above the price charged by that person
10or business for the same items or services immediately prior
11to the declared emergency. The bill provides that a person
12or business not engaged in selling certain goods or services
13immediately prior to the declared emergency shall not charge a
14customer more than 10 percent above the average price charged
15in the state for the same good or service immediately prior to
16the declared emergency.
17The bill provides that a seller may increase the price of
18certain goods or services greater than 10 percent if the seller
19can prove that the price increase is directly attributable to
20costs imposed by the supplier of the goods or costs for labor
21or materials used to provide the services. The increase in
22price shall not be greater than 10 percent of the total cost to
23the seller plus the amount of a customary markup applied in the
24usual course of business prior to the declared emergency.
25The bill provides that a seller offering certain goods or
26services for a sale price prior to the declared emergency may
27use the nonsale price of the good or service for purposes of
28calculating price increases under the bill.
29The bill provides that during a declared emergency and for 30
30days following the end of the declared emergency, an owner or
31operator of a hotel, motel, or other lodging or room service
32shall not increase regular rates advertised immediately prior
33to the declared emergency greater than 10 percent, but may
34increase the price if the increase is directly related to costs
35imposed on the owner or operator for goods or services used in
-4-1the regular course of business.
2The bill provides that cost controls established by the bill
3may be extended as necessary for an additional 30-day period by
4the governor, public elected official, or the general assembly.
5The bill provides that a violation of the provisions of the
6bill is a serious misdemeanor punishable by imprisonment not
7exceeding one year, a fine not exceeding $10,000, or both. The
8attorney general may prosecute violations of the bill as an
9unlawful practice under Code section 714.16 (consumer frauds).
10Under current administrative law, a seller is prohibited
11from charging an excessive price for merchandise needed by
12disaster victims during and for a period following a disaster
13(61 IAC 31.1). A violation of the administrative law is an
14unfair practice under Code section 714.16. Merchandise needed
15by disaster victims includes water, food, medicines, sanitation
16supplies, utilities, building materials, and materials, goods,
17or services for cleanup or repair.
-5-es/jh