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SB 1041

Housing: public accommodations; excessively increased pricing in hotel and lodging industry during a declared state of emergency; prohibit. Creates new act. TIE BAR WITH: SB 1042'26, SB 1043'26

2025-2026 Regular Session Introduced by Sarah Anthony and 16 co-sponsors

The package bans excessively high prices for lodging, essential goods, and energy during emergencies, with enforcement, penalties, and possible damages.

referred to Committee on Regulatory Reform
#consumerprotection:unfairtradepractices #housing:other #housing:publicaccommodations #stateagencies(existing):attorneygeneral
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Bill Summary · SB 1041

Overview

Senate Bill 1041 (introduced for the 2025-2026 Michigan Legislature) would create the Hotel and Lodging Pricing Protection Act. It, along with SB 1042 (Commodities and Emergency Services and Supplies Pricing Protection Act) and SB 1043 (Energy Pricing Protection Act), is tie-barred to enactment of all three bills. The package prohibits excessive pricing during and shortly after declared emergencies or market disruptions, establishes enforcement and remedies, and defines scope, penalties, and procedural rules.

Primary purpose and intent

  • Prohibit excessively increased pricing for lodging, essential goods and services, and energy during declared emergencies or market disruptions.
  • Provide a framework for investigation, litigation, enforcement, and civil remedies by the state (Attorney General) or local prosecutors.
  • Deterrence through civil penalties, potential damages, and, in some cases, criminal penalties for individuals or entities.

Key provisions and changes

General framework (all three bills)

  • Prohibitions apply “during or reasonably after” a declared state of emergency or market disruption (specific windows in each bill).
  • Affected sectors:
    • SB 1041: Lodging (hotels, motels, bed and breakfasts, short-term rentals, etc.).
    • SB 1042: Building materials, consumer food items (including animal food), emergency and medical supplies, and related goods and services.
    • SB 1043: Energy products and services (gasoline, propane, home heating oil, and related services).
  • “Excessively increased price” defined as more than a 20% disparity between pre-declaration and during/post-declaration pricing, with carve-outs for cost increases, prior discounts, contracted pre-declaration prices, or seasonally adjusted rates.

Enforcement and remedies

  • Investigation: AG or local prosecuting attorney may issue a written demand to appear and produce documents under oath when there is reasonable cause to believe a violation occurred. Specific procedural safeguards mirror typical investigatory demands (service, deadlines, confidentiality of testimony/materials except during enforcement action, etc.).
  • Litigation options:
    • Class actions on behalf of affected Michigan residents for actual damages or a minimum of $100 per violation (SB 1041) or similar frameworks in SB 1042/1043.
    • Injunctive relief and civil penalties; statutory caps:
    • Individual: up to $10,000 per violation.
    • Other than an individual: up to $500,000 per violation.
    • Potential treble damages if the trier of fact finds a “flagrant” violation.
    • Ability to recover damages, costs, and interests; potential appointment of a receiver for asset sequestration in some cases.
  • Attorney general authority to pursue actions has time limits:
    • Not more than 4 years after the violation occurred, and not more than 1 year after the last payment in a related transaction, whichever is later.
  • Burden on defendants:
    • Defendants may face investigation disclosure mechanisms and potential discovery under protective orders.

Criminal penalties

  • Violations with intent to achieve the prohibited result are punishable as misdemeanors:
    • Individuals: up to 1 year imprisonment or a $10,000 fine (or both).
    • Non-individuals: up to a $500,000 fine.

Other provisions

  • Non-exemption: The acts do not prevent eviction for lawful reasons.
  • Confidentiality: Investigative materials are kept confidential unless/until enforcement action is filed.
  • Remedies are cumulative (each act’s remedies stack with others).

Who is affected

  • Lodging providers and operators (hotels, motels, resorts, bed and breakfast, short-term rentals, etc.) during declared emergencies.
  • Suppliers and distributors of building materials, consumer foods, emergency/medical supplies, and related goods during emergencies (SB 1042).
  • Energy product and service providers (gasoline, heating oil, propane, etc.) during market disruptions (SB 1043).
  • Attorneys General and local prosecutors as primary enforcers; courts for adjudication and remedies; affected residents and consumers as potential plaintiffs or class members.

Procedural and timeline aspects

  • Tie-bar: SB 1041, SB 1042, and SB 1043 must all be enacted into law for any to take effect.
  • Investigative process begins with a written demand for appearance under oath if reasonable cause exists.
  • Litigation can result in damages, injunctive relief, and civil penalties, with explicit caps and possible trebled damages for “flagrant” violations.
  • Time limits apply to actions (4-year window for violations; 1-year post-last payment window for actions under the respective acts).
  • Changes in the market conditions can lead to temporary adjustments in the scope of protection (e.g., SB 1042 allows reduction of the time period if market conditions return to pre-declaration norms).

Summary of potential impact

  • Increased enforcement capability for price gouging in housing, essential goods, and energy sectors during and after emergencies.
  • Clear financial penalties and potential criminal penalties create strong deterrents for excessive pricing.
  • Potential impact on businesses’ pricing strategies during emergencies, with heightened scrutiny on deviations from prior prices.
  • Fiscal effects are indeterminate; could raise enforcement costs but also generate potential fine revenue. The exact disposition of any revenue is not specified.
  • The measures are broad in scope but include explicit exemptions and defensible cost-based justifications for price increases.

Compiled from official sources — confirm details with the bill’s official record.

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