2007 House Bill 228 (Limit governor's ability to trigger 'price gouging' restrictions)

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Introduced by Rep. Rob Wilkey on February 6, 2007, to limit the governor's call of a state of emergency to thirty days and require the governor to state specific geographical boundaries for the call with regard to the statute which triggers 'price gouging' restrictions.
- Referred to the House State Government Committee on February 7, 2007, to limit the governor's call of a state of emergency to thirty days and require the governor to state specific geographical boundaries for the call with regard to the statute which triggers 'price gouging' restrictions.
- Reported in the House on February 15, 2007, favorably, 1st reading, to Calendar.
Passed in the House (99 to 0) on February 27, 2007. [Vote Details and Comments]
Received in the Senate on February 28, 2007.
- Referred to the Senate State and Local Government Committee on March 2, 2007.
- Reported in the Senate on March 12, 2007, favorably, to Rules.
- Substitute offered in the Senate on March 12, 2007, to add provisions from HB 184 that would expand the ability of the General Assembly to enact legislation outside of the normal legislative process. Otherwise, this substitute retains the original provisions of the bill.
  - Withdrawn in the Senate on March 26, 2007, to add provisions from HB 184 that would expand the ability of the General Assembly to enact legislation outside of the normal legislative process. Otherwise, this substitute retains the original provisions of the bill.
- Amendment offered by Sen. Damon Thayer on March 12, 2007, to make title amendment.
  - Withdrawn in the Senate on March 26, 2007, to make title amendment.
Passed in the Senate (38 to 0) on March 26, 2007, to limit the governor's call of a state of emergency to thirty days and require the governor to state specific geographical boundaries for the call with regard to the statute which triggers 'price gouging' restrictions. [Vote Details and Comments]
Received in the House on March 26, 2007, to limit the governor's call of a state of emergency to thirty days and require the governor to state specific geographical boundaries for the call with regard to the statute which triggers 'price gouging' restrictions.
Signed by Gov. Ernie Fletcher on April 5, 2007, to limit the governor's call of a state of emergency to thirty days and require the governor to state specific geographical boundaries for the call with regard to the statute which triggers 'price gouging' restrictions.

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Comments

Introduced by Rep. Rob Wilkey on February 6, 2007. Passed in the House (99 to 0) on February 27, 2007. New Comment

1) gouging [by thefoxdid on February 7, 2007]
Mr. Wilkey,

What part of free enterprise and supply and demand don’t you understand?

Take Katrina for example; had it not been for those willing to buy supplies in other states and get them to New Orleans for profit, Katrina victims would have had nothing. When a man takes the initiative to provide products to a ravaged area, regardless of how much he is charging he is following an age-old American principle.

What if I have lost everything, have no power, food or water and I’m willing to buy a generator at whatever price someone is asking? Will you deny me the right to buy that generator? That is exactly what this bill will do. It will deny not only the seller but also the buyer. Who are you to stand in the middle of a market-based transaction?

Do you know that during Katrina one man in particular bought 20 generators, loaded them on a rented truck and drove several hundred miles to New Orleans to sell them? His price was double the retail price of those generators. He had bigger expenses and more time invested than in normal circumstances. People lined up to buy them, happy to have the opportunity to have power and they were willing to pay the price. No one complained; they were just happy. They state caught him before he could sell many of the generators, threw him in jail, and confiscated the generators. The generators that could have brought much wanted and needed relief to a lot of people sat in a warehouse and were never used. The man lost several thousand dollars and the victims didn’t have electricity. Generators are more valuable when they are badly needed, as are most products - SUPPLY AND DEMAND.

Do not meddle in this. What you are proposing will stop people from supplying relief during crisis events, not protect consumers. In America we use opportunities to make money. We see a need and we fill it.

Further, who is to say what gouging is? You want to further define it so what you can only be proposing is that government decides what profit margin a man must work within. That sir is none of your business. A seller’s profit margin is what he can get for the product. Would you limit the loss a seller may suffer? What if a man wants to give away his product in time of need? Would you stop that as well? Where is the line drawn? If a man is hungry and wants to buy my sandwich for ten dollars, how can you, a man sitting in Frankfort, determine the value of that product to those who would happily enter into a business agreement? What if, after he makes an offer of 10 dollars for my sandwich, I hold out for 15 dollars and we agree on 12.50? Have I gouged? What if I take 100 three dollar sandwiches to an area where sandwiches are needed and I don’t put a price tag on them but let people make offers? What if the offers are for 10 dollars, 20 dollars, or more? Am I gouging?

You might want to rethink this bill.

Terry Gray

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2) Did you read the Bill? [by JGault on February 7, 2007]
The Bill actually reduces the time the governor can impose gouging restrictions from the ‘duration’ of the emergency to only 30 days. The previous law already allowed sellers to recover the increased expenses in delivering the goods and services. Only the actual profit is under any scrutiny.

You can still make a good profit. It just cannot be 'grossly in excess' of pre-disaster profit.

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