Regular Session 2021-2022 House Bill 2131 P.N. 2469

PRINTER'S NO. 2469

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2131

Session of

2021

INTRODUCED BY HILL-EVANS, DELLOSO, ISAACSON, SCHLOSSBERG,

McNEILL, SANCHEZ, DeLUCA, FITZGERALD, NEILSON, SHUSTERMAN,

KINSEY, INNAMORATO, D. WILLIAMS, FREEMAN, N. NELSON,

HOHENSTEIN, KIM, KENYATTA, BURGOS AND BULLOCK,

DECEMBER 2, 2021

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, DECEMBER 2, 2021

AN ACT

Amending the act of October 31, 2006 (P.L.1210, No.133),

entitled "An act prohibiting price gouging; and imposing

penalties," further providing for purpose, for definitions,

for prohibitions, for rental rates and for repair,

reconstruction or cleanup contractors; and providing for

civil actions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2(2) of the act of October 31, 2006

(P.L.1210, No.133), known as the Price Gouging Act, is amended

to read:

Section 2. Purpose.

The General Assembly finds and declares as follows:

* * *

(2) These periods of disruption result from many

factors, including extreme weather conditions, depletion of

stockpiles, labor strikes, civil disorder, disease, natural

or manmade emergencies or disasters and military action.

* * *

Section 2. Section 3 of the act is amended by adding

definitions to read:

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Proclamation or declaration of disaster emergency." A

declaration by the Governor of disaster emergency under 35

Pa.C.S. § 7301(c) (relating to general authority of Governor).

"Rental price." Any of the following:

(1) For housing rented within one year prior to the time

of the proclamation or declaration of disaster emergency, the

actual amount paid by the tenant.

(2) For housing not rented at the time of the

declaration or proclamation of disaster emergency, but

instead rented or offered for rent within one year prior to

the proclamation or declaration of disaster emergency, the

most recent amount offered before the proclamation or

declaration of disaster emergency.

(3) For housing rented at the time of the proclamation

or declaration of disaster emergency but which becomes vacant

while the proclamation or declaration of disaster emergency

remains in effect and which is subject to an ordinance, rule,

regulation or initiative measure adopted by the governing

body of a local government that establishes a maximum amount

that a landlord may charge a tenant for rent, the actual

amount paid by the previous tenant or the amount specified in

paragraph (4), whichever is greater. This amount may be

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increased by 5% if the housing was previously rented or

offered for rent unfurnished and the housing is now being

offered for rent fully furnished. This amount shall not be

adjusted for any other good or service, including, but not

limited to, gardening or utilities currently or formerly

provided in connection with the lease.

(4) For housing not rented and not offered for rent

within one year prior to the proclamation or declaration of

disaster emergency, an amount at least equal to 160% of the

fair market rent established by the United States Department

of Housing and Urban Development. This amount may be

increased by 5% if the housing is offered for rent fully

furnished. This amount shall not be adjusted for any other

good or service, including, but not limited to, gardening or

utilities currently or formerly provided in connection with

the lease.

(5) For housing advertised, offered or charged at a

daily rate at the time of the declaration or proclamation of

disaster emergency, the amount described in paragraph (1) if

the housing continues to be advertised, offered or charged at

a daily rate.

(6) For mobile homes rented to existing tenants at the

time of the proclamation or declaration of disaster

emergency and subject to a local rent control ordinance, the

amount authorized under the local rent control ordinance. For

new tenants who enter into a rental agreement for a mobile

home during the proclamation or declaration of disaster

emergency that is subject to rent control, the amount of rent

last charged for a space in the same mobile home park. For

mobile homes not subject to a local rent control ordinance

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and not rented at the time of the proclamation or declaration

of disaster emergency, the amount of rent last charged for

the mobile home.

* * *

Section 3. Section 4(a) and (b) of the act are amended and

the section is amended by adding subsections to read:

Section 4. Price gouging prohibited.

(a) Prohibition.--During and within 30 days of the

termination of a state of disaster emergency declared by the

President of the United States under the provisions of the

National Emergencies Act (Public Law 94-412, 90 Stat. 1255), or

the Governor pursuant to the provisions of 35 Pa.C.S. § 7301(c)

(relating to general authority of Governor), it shall be a

violation of this act for any party within the chain of

distribution of consumer goods or services or both to sell or

offer to sell the goods or services within the geographic region

that is the subject of the declared emergency for an amount

which represents an unconscionably excessive price.

(a.1) Rental rates.--

(1) During and within 30 days of the termination of a

proclamation or declaration of disaster emergency or during

any period of extension of a proclamation or declaration of

disaster emergency declared by the President of the United

States or the Governor, it shall be a violation of this act

for an individual, business or other entity to increase a

rental price advertised, offered or charged for housing to an

existing or prospective tenant for an amount which represents

an unconscionably excessive price.

(2) An unconscionably excessive rental price increase

shall not be a violation of this act if the individual,

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business or entity shows that the increase is directly

attributable to additional costs for repairs or additions

beyond normal maintenance that were amortized over the rental

term that caused the rent to be increased or that an increase

was contractually agreed to by the tenant prior to the

proclamation or declaration of disaster emergency.

(3) It shall not be a defense to prosecution under this

subsection that an unconscionable excessive rental price

increase was based on the length of the rental term, the

inclusion of additional goods or services or that the rent

was offered by, or paid by, an insurance company or other

third party on behalf of a tenant.

(4) This subsection shall not be construed to authorize

a landlord to charge a price greater than the amount

authorized by a local rent control ordinance.

(a.2) Repair, reconstruction or cleanup contractors.--

(1) During and within 30 days of the termination of a

proclamation or declaration of disaster emergency or during

any period of extension of a proclamation or declaration of

disaster emergency declared by the President of the United

States or the Governor, and for a period of 180 days

following a proclamation or declaration of disaster

emergency , it shall be a violation of this act for a

contractor to sell or offer to sell any repair or

reconstruction services or any services used in emergency

cleanup for a price of more than 10% above the price charged

by that contractor for those services immediately prior to

the proclamation or declaration of disaster emergency.

(2) A price increase greater than 10% is not a violation

of this act if a contractor shows that:

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(i) the increase in price was directly attributable

to additional costs imposed on them by a supplier of the

goods or directly attributable to additional costs for

labor or materials used to provide the services during

the proclamation or declaration of disaster emergency;

and

(ii) the price represents no more than 10% greater

than the total cost to the contractor plus the markup

customarily applied by the contractor for that good or

service in the usual course of business immediately prior

to the onset of the proclamation or declaration of

disaster emergency.

(b) Evidence of unconscionably excessive price.--It is prima

facie evidence that a price is unconscionably excessive if,

during and within 30 days of the termination of a [state]

proclamation or declaration of disaster emergency, parties

within the chain of distribution charge a price that exceeds an

amount equal to or in excess of [20%] 10% of the average price

at which the same or similar consumer goods or services were

obtainable in the affected area during the last seven days

immediately prior to the [declared state of] proclamation or

declaration of disaster emergency.

* * *

Section 4. The act is amended by adding a section to read:

Section 5.1. Civil actions.

In addition to the authority granted to the Attorney General

in section 5(a), private citizens and district attorneys shall

have the right to initiate a civil action against a violator of

this act to seek other relief beyond any penalty levied by the

Attorney General, including injunctive relief, restitution and

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costs under the act of December 17, 1968 (P.L.1224, No.387),

known as the Unfair Trade Practices and Consumer Protection Law.

Section 5. This act shall take effect in 60 days.

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