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HB 278

Relating to the revocation of certain licenses of persons found to have engaged in price gouging during a declared disaster.

89th Legislature, 1st Called Session (2025) Introduced by Lauren Simmons

HB 278 allows Texas to revoke professional licenses of individuals convicted of price gouging during declared disasters, adding professional penalties to criminal consequences.

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#agriculture #departmentof(v0566) #attorneygeneral(v2811) #business&commerce--general(i0050) #business&commerce--tradepractices(i0006) #consumerprotection(i0080) #disasterpreparedness&relief(i0211) #licensing&regulation #texasdepartmentof(v8529) #occupationalregulation--othertrades&professions(i0541)
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Bill Summary · HB 278

Legislative bill overview

HB 278 would authorize the revocation of professional licenses for individuals or businesses found guilty of price gouging during declared disasters in Texas. The bill creates a licensing consequence mechanism tied to price gouging convictions, potentially affecting contractors, retailers, service providers, and other licensed professionals who exploit emergency conditions for profit.

Why is this important

Price gouging during disasters—such as hurricanes, floods, or other emergencies—can prevent vulnerable populations from accessing critical goods and services when needs are greatest. This bill attempts to create financial and professional deterrents beyond criminal penalties alone, potentially protecting disaster victims from exploitation during their most vulnerable moments.

Potential points of contention

  • Definition and enforcement challenges: "Price gouging" lacks a universally accepted definition; determining what constitutes illegal gouging versus legitimate market-driven pricing during supply shortages can be legally ambiguous and difficult to prosecute fairly
  • Due process concerns: License revocation is a severe professional consequence that could effectively end careers; critics may argue this creates disproportionate punishment without sufficient legal safeguards or appeal mechanisms
  • Chilling effect on commerce: Businesses may hesitate to serve disaster areas if license revocation risk discourages them from operating during emergencies, potentially reducing available goods and services when they're needed most
  • Overlap with existing law: Texas already has criminal price gouging statutes; this bill's added licensing penalties may create redundant enforcement mechanisms or confusion about appropriate remedies

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

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