1.1 	A bill for an act
1.2 	relating to consumer protection; prohibiting price gouging; prescribing penalties;
1.3 	proposing coding for new law in Minnesota Statutes, chapter 325E.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [325E.60] ABNORMAL MARKET DISRUPTIONS; 
1.6 	UNCONSCIONABLY EXCESSIVE PRICES.
1.7 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this 
1.8 	subdivision have the meanings given.
1.9 	(b) "Abnormal market disruption" means any change in the market resulting from 
1.10 	a natural or man-made disaster, a national or local emergency, or an event resulting in a 
1.11 	declaration of a state of emergency by the governor or president. "Abnormal market 
1.12 	disruption" also means an increase in the price for any essential consumer goods or 
1.13 	services that exceeds 30 percent within any seven-day period.
1.14 	(c) "Essential consumer goods or services" means goods or services vital and 
1.15 	necessary for the health, safety, and welfare of the public, including, without limitation, 
1.16 	food, water, fuel, gasoline, shelter, transportation, health care services, pharmaceuticals, 
1.17 	and medical supplies.
1.18 	(d) A price is "unconscionably excessive" if:
1.19 	(1) the amount charged represents a gross disparity between the price of the good 
1.20 	or service and (i) the price at which the same good or service was sold or offered for 
1.21 	sale in the usual course of business immediately prior to the onset of the abnormal 
1.22 	market disruption, or (ii) the price at which the same or similar good or service is readily 
1.23 	obtainable by other purchasers in the trade area; and
2.1 	(2) the disparity is not substantially attributable to significant additional costs not 
2.2 	within the control of the seller and does not increase the seller's profit.
2.3 		Subd. 2.Prohibition. During any abnormal market disruption no person shall sell 
2.4 	or offer to sell any essential consumer goods or services for an amount that represents an 
2.5 	unconscionably excessive price.
2.6 		Subd. 3.Civil penalty. Any person who is found to have violated this section is 
2.7 	subject to a civil penalty of not more than $10,000 per sale or transaction.
2.8 		Subd. 4.Enforcement authority. The attorney general may investigate any 
2.9 	alleged violation of this section. The authority of the attorney general under this section 
2.10 	includes, but is not limited to, the authority provided for in section 8.31. In addition, the 
2.11 	commissioner of commerce may use the authority under section 45.027 for the purpose of 
2.12 	preventing violations of this section.