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Current Status Bill Number:View additional legislative information at the LPITS web site.3313 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20010123 Primary Sponsor:Cobb-Hunter All Sponsors:Cobb-Hunter Drafted Document Number:l:\council\bills\dka\4063mm01.doc Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Unfair trade practices, unconscionable prices during state of emergency; Consumer Affairs, Civil Defense, Businesses History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20010123 Introduced, read first time, 26 HLCI referred to Committee Versions of This Bill
TO AMEND ARTICLE 1, CHAPTER 5, TITLE 39, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA UNFAIR TRADE PRACTICES ACT, BY ADDING SECTION 39-5-145 SO AS TO PROHIBIT THE RENTAL AND SALE OF ESSENTIAL COMMODITIES AND RENTAL AND LEASE OF DWELLING UNITS, INCLUDING MOTEL OR HOTEL UNITS OR OTHER TEMPORARY LODGING, OR SELF-STORAGE FACILITIES AT AN UNCONSCIONABLE PRICE DURING AND WITHIN THE AREA OF A DECLARED STATE OF EMERGENCY, TO DEFINE "COMMODITY" AND "UNCONSCIONABLE PRICE", TO ESTABLISH EVIDENTIARY STANDARDS FOR ACTIONS BROUGHT PURSUANT TO THESE PROVISIONS OR LOCAL ORDINANCES, AND TO PROVIDE FOR THE ADDITIONAL CIVIL PENALTY OF UP TO TWENTY-FIVE THOUSAND DOLLARS FOR VIOLATIONS OCCURRING OVER A TWENTY-FOUR HOUR PERIOD AND FOR A CRIMINAL PENALTY OF IMPRISONMENT FOR NOT MORE THAN THIRTY DAYS FOR A WILFUL VIOLATION OF THESE PROVISIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 5, Title 39 of the 1976 Code is amended by adding:
"Section 39-5-145. (A) As used in this section:
(1) 'Commodity' means goods, services, materials, merchandise, supplies, equipment, resources, or other articles of commerce, and includes, without limitation, food, water, ice, chemicals, petroleum products, and lumber essential for consumption or use as a direct result of a declared state of emergency.
(2)(a) 'Unconscionable price' means an amount charged, which:
(i) represents a gross disparity between the price of the commodity or rental or lease of a dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility that is the subject of the offer or transaction and the average price at which that commodity or dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility was rented, leased, sold, or offered for rent or sale in the usual course of business during the thirty days immediately before a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the rental or sale of the commodity or rental or lease of the dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility, or national or international market trends; or
(ii) grossly exceeds the average price at which the same or similar commodity, dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility was readily obtainable in the trade area during the thirty days immediately before a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the rental or sale of the commodity or rental or lease of the dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility, or national or international market trends.
(b) It is prima facie evidence that a price is unconscionable if it meets the definition of item (a) or (b).
(B)(1) Upon a declaration of a state of emergency by the Governor, it is unlawful and a violation of this article for a person or his agent or employee to:
(a) rent or sell or offer to rent or sell a commodity at an unconscionable price within the area for which the state of emergency is declared; or
(b) impose unconscionable prices for the rental or lease of a dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility within the area for which the state of emergency is declared.
(2) This prohibition remains in effect until the declaration expires or is terminated.
(C) A price increase approved by an appropriate government agency is not a violation of this section.
(D) This section does not apply to sales by growers, producers, or processors of raw or processed food products, except for retail sales of those products to the ultimate consumer within the area of the declared state of emergency.
(E) This section does not preempt the powers of local government, except that the evidentiary standards contained in this section are the sole evidentiary standards to be adopted by ordinance of a local government to restrict price gouging during a declared state of emergency.
(F) In addition to all other remedies provided in this article the court may impose a civil penalty of not more than one thousand dollars for each violation, with an aggregate total not to exceed twenty-five thousand dollars for a twenty-four hour period, against a person who violates the provisions of this section. Penalties collected pursuant to this subsection accrue to the enforcing authority to further consumer enforcement efforts.
(G) In addition to all other remedies provided in this article, a person who wilfully violates this section is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than thirty days."
SECTION 2. This act takes effect upon approval by the Governor.
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