Bill
SB 955
SB 955 bans excessive price increases for key goods and services during declared emergencies, with a 10% presumptive threshold, enabling AG enforcement and civil remedies.
Status
- Introduced: January 28, 2025
- Referred to: Committee on Government Operations
- Note: SB 955 has appeared in committee packages alongside related measures addressing lodging (SB 954) and energy (SB 956); some committee materials list the three bills as tie‑barred.
Purpose / Intent
- To prohibit “price gouging” by businesses during (and for a limited period after) a declared state of emergency by banning excessively increased prices for certain goods, services, emergency supplies, and medical supplies. The bill is intended to protect consumers during disasters and other emergencies.
Key definitions
- “State of emergency”: a governor‑declared natural or manmade disaster or public‑health emergency.
- Covered items: building materials, consumer food items, emergency supplies (e.g., water, batteries, blankets, plywood), medical supplies (prescription and OTC medications, bandages, etc.), goods, and services.
- “Excessively increased price”: a price showing an “unjustified disparity” between the pre‑emergency market price and the price during (or reasonably after) the emergency. The bill sets a presumptive threshold of a disparity greater than 10% unless the seller can show the increase was attributable to legitimate reasons.
Prohibited conduct
- During or reasonably after a declared emergency, a person in any part of the distribution chain may not:
- Charge a price “grossly in excess” of the price for similar items;
- Charge an “excessively increased price” (per the 10% standard); or
- Offer items at an excessively increased price.
Exceptions / Defenses
- A price increase may be justified and therefore not prohibited if the seller demonstrates it was caused by:
- An increase in the cost of bringing the goods/services to market (e.g., wholesale cost increases);
- An extraordinary pre‑declaration discount that skews the baseline; or
- In some versions, a markup that does not exceed the retailer’s cost.
Enforcement and remedies
- Attorney General (AG) authority: the AG may bring enforcement actions, including class actions on behalf of state residents, seeking actual damages (or $100, whichever is greater), injunctive and equitable relief, civil penalties, and other remedies.
- Court powers: courts may order reimbursement, impose equitable remedies (including appointment of a receiver or asset sequestration), and require notice to affected classes (potentially at defendant’s expense).
- Investigative powers: the AG or local prosecuting attorney may serve a written demand requiring an individual to appear under oath and produce documents relevant to an investigation; noncompliance may be enforced in court. Investigative materials are confidential unless and until an enforcement action is filed, after which they may be disclosed in discovery subject to protective orders.
Penalties
- The bill prescribes civil enforcement and penalties; committee reports also reference potential criminal enforcement and fines in related provisions, but exact criminal penalties vary by draft and are not consistently specified in the versions reviewed.
Who is affected
- Businesses and persons in the chain of distribution for the listed goods and services (manufacturers, wholesalers, retailers, service providers, contractors).
- Consumers and residents in declared emergency areas (who would be the beneficiaries of AG or class actions).
- Small businesses: committee fiscal notes identify potential meaningful impacts for small businesses that sell covered items.
Fiscal and procedural notes
- Fiscal impact: committee analyses describe an indeterminate fiscal effect — enforcement could increase litigation and administrative costs, but imposed fines/penalties could generate revenue. The net effect depends on enforcement intensity and the number/scale of emergencies.
- Procedural history: as of the provided materials, SB 955 has been circulated in committee materials and subject to hearings and reports (see status above). Different substitute drafts exist; the bill has been developed in parallel with companion bills addressing lodging and energy pricing.
Bottom line
- SB 955 creates a state‑level prohibition on excessive price increases for key consumer, construction, medical, and emergency goods/services during declared emergencies, establishes investigative powers for prosecutors, provides civil remedies (including class actions brought by the AG), and sets a 10% presumptive threshold for “excessive” increases with specified defenses for legitimate cost drivers.
Compiled from official sources — confirm details with the bill’s official record.
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