Source: http://emergencymanagementlaw.com/category/phases-of-emergency-management/
Timestamp: 2019-04-21 18:31:59+00:00

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The Texas Attorney General has notified 127 gas stations of price gouging during Hurricane Harvey.
During Hurricane Harvey, there was a lot of alleged price gouging of necessities. This not only impacted the costal area, but also more interior areas that never saw a direct impact from the storm. On October 30, 2017, The Attorney General’s Consumer Protection Division sent notices to 127 gas-stations in Texas that charged in excess of $3.99 per gallon of gasoline. The notice provided to each business gives the individuals a chance to resolve the issue before proceeding to the litigation stage. This aren’t the only business likely to receive notices though. The AG’s Office is still investigating complaints received from consumers during this timeframe.
The Texas Attorney General’s Office is using the Texas Deceptive Trade Practices Act (or “DTPA” for short) to go after price gouging. The DTPA is what consumers and the state often use to control unscrupulous businesses in Texas. The DTPA allows for stiff civil penalties and injunctive relief to prevent business from maintaining deceptive or unfair trade practices. Price Gouging is only one of many practices prohibited. Often, this list of prohibited practices is called simply “the laundry list,” because there are so many things.
Friday, Governor Abbott extended the state disaster declaration for 60 Texas Counties.
On Friday, the Governor Greg Abbott renewed the state level Disaster Declaration for 60-counties in the Gulf Coast region. Generally, disaster declarations have a 30-day shelf life–or earlier if the state legislature decides the state of disaster should be terminated.  After that, it requires a renewal to ensure the disaster conditions still exist.  It is unclear though whether more than one renewal is required.
Though it may sound specific at first, the code seems to leave the issue of subsequent renewals open for interpretation. There are two ways this could be potentially read: (a) the 30-day rule is for the initial declaration, with the first renewal having potentially perpetual duration; or (b) declaration must be renewed every 30-days, or risk expiring.
There is essentially no case law to help determine what the section really intends to convey. It’s likely that the legislature didn’t foresee a disaster striking that would require more than 30-days of response & initial recovery.
Read the Renewed Declaration & Proclamation by clicking here.
 Tex. Gov’t Code §418.014(b), (c).
Price gouging is illegal in Texas. Texas are encouraged to report suspected price gouging to the Texas AG’s Office.
After a disaster, price gouging can occur by unscrupulous people attempting to take advantage of others in the midst of crisis. Texas has codified that price gouging during a disaster violates the Texas Deceptive Trade Practices Act . In fact, many cities and counties have plans that provide ways to ensure prices are controlled during the disaster.  Specifically, selling “fuel food, medicine, or another necessity” at an excessive price or demanding such in connection with the necessity is illegal.  Though consumers may take action on their own, the County or District Attorney is allowed to prosecute those suspected of price gouging during a disaster.  Texas also has the Consumer Protection Division under the umbrella of the Texas Attorney General’s Office. That office helps to investigate and prosecute claims of price gouging.
Price gouging doesn’t just happen in a disaster zone. There have been cases where states have prosecuted companies that were hundreds of miles away from where the disaster impacted.  Everyone is encouraged to remain vigilant.
 Tex. Bus. & Com. Code § 17.46(b)(27) (2017).
 Tex. Gov. Code §418.106(b)(1) (2017).
 Tex. Bus. & Com Code § 17.48 (2017).
 AG Paxton Announces Consumer Protection Hotline, August 25, 2017, Full Article Here.
 See People ex rel. Spitzer v. Weaver Petroleum, Inc., 827 N.Y.S.2d 813 (2006) (evidence of price gouging found at gasoline retailer in New York following Hurricane Katrina). But see White v. R.M. Packer Co., Inc., 635 F.3d 571 (1st Cir. Feb. 18, 2011) (evidence supported a conclusion of “conscious parallelism, but not price gouging).
Henderson County, Ill. failed to comply with all federal regulations during management of Public Assistance projects and is now faced with a staggering $471,791 debt to FEMA.
In 2008, Illinois was hit with historic flooding. One of the counties impacted–Henderson County, Ill.–received federal funding through the Public Assistance program.  However, a Department of Homeland Security audit in 2011 revealed that the county received $3.7 million in ineligible funds from FEMA due to its failure to comply with the federal laws and regulations in completing the work (not necessarily that the work itself was ineligible for funding).  The county was able appeal and reduce the debt significantly to $471,791; however, that is still a sizable debt for the County of approximately 7,000 residents and a $49,612 to repay.  In an effort to try and buy the county time, the County’s Board decided to deplete two emergency reserve funds, bringing the debt down to $316,791.
What is unclear is exactly why, but if the County does not pay the debt back by June 2017, the county faces the loss of several vital agencies such as the Health Department, Sheriff’s Office, and Transportation Services. What concerns the board is that after making this “good faith payment”, the county may not have the funds to respond to the next looming flood.
No matter how this case pans out, it will be one to follow and watch the outcome of.
 Elizabeth Meyer, County Depletes Two Emergency Reserve Funds as Good-Faith Effort at Denting FEMA Debt, The Hawk Eye (Sept. 28, 2016). See generally Fed. Emergency Mgmt. Agency, Disaster Declarations for Illinois, (Sept. 29, 2016) https://www.fema.gov/disasters/grid/state-tribal-government/55?field_disaster_type_term_tid_1=All (Three major disaster declarations were declared in 2008 for Illinois for Severe Storms and Flooding: 1800 in Oct. 3, 2008; 1771 in Jun. 24, 2008; and 1747 in Mar. 7, 2008).
 Elizabeth Meyer, County Depletes Two Emergency Reserve Funds as Good-Faith Effort at Denting FEMA Debt, The Hawk Eye (Sept. 28, 2016).
 Henderson Cty., Henderson County EDC Demographics, (2008) http://www.hendersoncountyedc.com/About-Henderson/Demographics.
 See 11 USCA §901 et seq; U.S. Courts, Chapter 9 – Bankruptcy Basics, (2016), http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-9-bankruptcy-basics (noting that the definition of a municipality under Chapter 9 of the Bankruptcy code is broad enough to include a County Government).

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