Maine Legislature, Session 122, LD 1892
Committee Amendment CA_A_H875 (House)

MAINE STATE LEGISLATURE 
The following document is provided by the 
LAW AND LEGISLATIVE DIGITAL LIBRARY 
at the Maine State Law and Legislative Reference Library 
http://legislature.maine.gov/lawlib 
Reproduced from scanned originals with text recognition applied 
(searchable text may contain some errors and/or omissions) 
~ 
~. ~~. 
~ ~. 
L.D. 1892 
DATE: 3/d3Io~ 
(Filing No. H-875: 
JUDICIARY 
Reproduced and distributed under the direction of the Clerk of 
the House. 
t22ND LEGISLATURE 
COMMITTEE 
Act To Prevent 
AMENDMENT .)Q" to H.P. 1333, L.D. 
Price Gouging" 
1892, Bill, "An 
Amend the bill by striking out everything after the enacting 
clause and before the swnmary and inserting in its place the 
following: 
'Sec.t. to MRSA §1105, as amended by PL 1979, c. 541, Pt. A, 
§9l, is repealed and the following enacted in its place: 
SIlOS. 
Profiteering in necessities 
1. 
Definitions. 
As 
used in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Abnormal 
market 
disruption" 
means 
a 
significant 
disruption to the production, distribution, supply, sale or 
availability of a commodity or commodities that: 
(1) 
Is 
caused 
by 
an event such as 
a 
natural or 
man-made 
emergency 
or 
disaster, 
whether 
local 
or 
remote: and 
(2) 
Causes ordinary competitive market forces to cease 
to function normally. 
B. 
"Cost" 
means 
the 
expense 
associated 
with 
the 
acquisition, production, distribution or sale of necessities 
and may 
include, 
among other things, 
replacement costs, 
taxes and transportation costs. 
Page l-LR2565(2) 
COMM/rrEE AMENDMENT 
· 
>.~ ';:;. 
';.~. " 
COMMITTEE AMENDMENT "1+,, to H.P. 1333, L.D. 1892 
C. 
"Necessities" 
includes 
food 
for 
human 
or 
animal 
consumption: pharmaceutical products. including prescription 
medications: wearing apparel: shoes: building materials: gas 
and electricity for light. heat and power; ice; fuel of all 
kinds: and fertilizer and fertilizer ingredients: together 
wi th tools. utensils. implements. machinery and eguipment 
reguired for the actual production or manufacture of the 
same. 
"Necessities" includes any other vital or necessary 
good or service except those: 
(1) 
Subject to continuous maximum price regulation 
under the provisions of any state or federal law; 
(2) 
As to which the State's authority is preempted; or 
(3) 
Furnished or provided by: 
(a) 
Insurers: or 
(b) 
Nonprofit 
hospitals. 
medical 
service 
organizations or health maintenance organizations 
authorized to transact business within the State 
pursuant to Title 24 and Title 24-A. 
D. 
"Unconscionable price" means a price that is actionable 
under this section. 
There is a rebuttable presumption that 
a price is unconscionable when it exceeds by more than 15% 
the Sum of: 
(1) The price at which similar goods or services were 
offered for sale or sold by that person or another 
person similarly situated immediately prior to 
the 
beginning date of the abnormal market disruption: and 
(2) 
The increased cost calculated according to the 
method used by that person prior to the abnormal market 
disruption. 
z. 
Declaration. 
Whenever it appears upon due inguiry and 
consultation with the Attorney General that an abnormal market 
disruption exists or that there is a substantial likelihood that 
an abnormal market disruption is imminent. the Governor may. in 
the Governor's sole discretion and after considering whether the 
declaration of an abnormal market disruption itself will disrupt 
supplies for affected necessities. declare an abnormal market 
disruption. 
A. 
A declaration made under this subsection must specify: 
COMM/rrEE AMENDMENT 
COMMITTEE AMENDMENT "4" to H.P. 1333, L.D. 1892 
(1) 
The 
beginning 
date 
of 
the 
abnormal 
market 
disruption; 
(2) 
The 
particular 
necessity, 
necessities 
or 
categories of necessities that are affected by the 
abnormal market disruption and made 
subject to the 
provisions of subsections 3 and 4; and 
(3) 
The levels of trade or commerce that are affected 
by the abnormal market disruption and made subject to 
the provisions of subsections 3 and 4. 
B. 
A declaration of abnormal market disruption under this 
subsection expires when the Governor declares it expired or 
days from the date of its issuance, whichever is sooner. 
The 
declaration 
of 
abnormal 
market 
disruption 
may 
be 
modified by the Governor at any time. 
C. 
The 
Governor 
shall 
publish 
decisions 
under 
this 
subsection 
in 
a 
manner 
reasonably 
calculated 
to 
gi ve 
affected persons adequate notice. 
D. 
Any person may petition the Governor 
regarding the 
Governor's decisions under this subsection. 
3. 
Profiteering 
prohibited. 
After 
the 
Governor 
has 
declared an abnormal market disruption and before the declaration 
of the abnormal market disruption expires, a person may not sell 
or offer for sale necessities at an unconscionable price. 
4. 
Civil violation. 
A violation of subsection 3 is a civil 
violation that constitutes and may be prosecuted as an unfair act 
or practice in the conduct of trade or commerce pursuant to Title 
5, section 207, except that the provisions of Title 5, section 
do 
not 
apply. 
The 
declaration 
of 
an 
abnormal 
market 
disruption creates a rebuttable presumption that the disruption 
occurred and existed from the beginning date in the declaration 
to the date of its expiration.' 
SUMMARY 
This amendment replaces the bill. 
This 
amendment 
repeals 
and 
replaces 
the 
current 
"profiteering in necessities" statute to protect consumers from 
unconscionably high prices for necessities during abnormal market 
disruptions. 
This amendment ties such profiteering to the Maine 
Unfair Trade Practices Act, 
authorizing injunctive relief and 
significant monetary penalties. 
COMMITTEE AMENDMENT 
, .. : 
~~. ::!: .:.' 
COMMITTEE AMENDMENT "4" to H.P. 1333, L.D. 1892 
This amendment establishes the authority of the Governor to 
declare the existence of an abnormal market disruption in one or 
more necessities or categories of necessities. 
During a declared 
abnormal market disruption, profiteering in necessities is a 
civil violation and may be prosecuted as a violation of the Maine 
Unfair Trade Practices Act, except that private remedies are not 
available. 
Profiteering in necessities means selling or offering 
to sell necessities at an unconscionable price. 
The Governor has sole discretion as to whether to declare an 
abnormal market disruption, although it must be preceded by due 
inquiry and consultation with the Attorney General. 
The Governor 
must also consider whether the declaration of an abnormal market 
disruption itself will disrupt supplies for affected necessities. 
The 
declaration must state the 
beginning date 
for 
the 
abnormal market disruption, 
the necessities or categories of 
necessities covered by the declaration and the levels of trade or 
commerce 
affected 
by 
the 
declaration. 
An 
abnormal 
market 
disruption ends when the Governor so declares or at the end of 60 
days, whichever is sooner. 
The Governor may modify a declaration 
at any time. 
The Governor must publish decisions made regarding abnormal 
market disruptions in a 
manner 
reasonably calculated to give 
adequate notice to affected persons. 
Any person may petition the Governor regarding decisions 
about the declaration of an abnormal market disruption. 
The declaration of an abnormal market disruption creates a 
rebuttable 
presumption 
that 
the 
abnormal 
market 
disruption 
occurred and existed for the duration of the declaration. 
An abnormal market disruption is a significant disruption to 
the production, distribution, supply, sale or availability of a 
commodi ty or commodities that is caused by an event such as a 
natural or 
man-made 
emergency or disaster, 
whether local or 
remote, 
and that causes ordinary competitive market forces to 
cease to function normally. 
"Cost" means the expense associated with the acquisition, 
production, distribution or sale of necessities and may include, 
among other things, replacement costs, taxes and transportation 
costs. 
"Necessities" is defined to include food for human or animal 
consumption; 
pharmaceutical 
products, 
including 
prescription 
medications; wearing apparel; shoes; building materials; gas and 
COMMITTEE AMENDMENT 
\ 
~": 
I 
~ ':.' 
'~. 
COMMITTEE AMENDMENT "if" to H.P. 1333, L.D. 1892 
electricity for light, heat and power; ice; fuel of all kinds; 
and fertilizer and fertilizer ingredients; together with tools, 
utensils, implements, machinery and equipment required for the 
actual 
production 
or 
manufacture 
of 
the 
listed 
goods. 
"Necessities" 
includes 
any other vital or necessary good or 
service except those goods or 
services that are subject to 
continuous maximum price regulation under the provisions of any 
state or federal law; those goods or services as to which the 
State's authority is preempted; or goods or services furnished or 
provided by insurers or nonprofit hospitals, 
medical service 
organizations or health maintenance organizations authorized to 
transact business within the State pursuant to Title 24 and Title 
24-A. 
This amendment provides that a price is rebuttably presumed 
to be unconscionable when it exceeds by more than 15% the sum of 
the price at which similar goods or services were offered for 
sale or sold by that person or another person similarly situated 
immediately prior to the beginning date of the abnormal market 
disruption and the increased cost calculated according to the 
method 
used 
by 
that 
person 
prior 
to 
the 
abnormal 
market 
disruption. 
COMMITTEE AMENDMENT