Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 6

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 06:51pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 3.1 3.2 3.3 3.4
3.5

A bill for an act
relating to consumer protection; prohibiting price gouging during an abnormal
market disruption; prescribing penalties; proposing coding for new law in Minnesota
Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.80] ABNORMAL MARKET DISRUPTIONS; UNCONSCIONABLY
EXCESSIVE PRICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given.
new text end

new text begin (b) "Essential consumer good or service" means a good or service that is vital and
necessary for the health, safety, and welfare of the public, including without limitation:
food; water; fuel; gasoline; shelter; transportation; health care services; pharmaceuticals;
and medical, personal hygiene, sanitation, and cleaning supplies.
new text end

new text begin (c) "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
goods and services.
new text end

new text begin (d) "Unconscionably excessive price" means a price that represents a gross disparity
compared to the seller's average price of an essential good or service, offered for sale or
sold in the usual course of business, in the 60-day period before an abnormal market
disruption is declared under subdivision 2. None of the following is an unconscionably
excessive price:
new text end

new text begin (1) a price that is substantially related to an increase in the cost of manufacturing,
obtaining, replacing, providing, or selling a good or service;
new text end

new text begin (2) a price that is no more than 25 percent above the seller's average price during the
60-day period before an abnormal market disruption is declared under subdivision 2;
new text end

new text begin (3) a price that is consistent with the fluctuations in applicable commodity markets or
seasonal fluctuations; or
new text end

new text begin (4) a contract price, or the results of a price formula, that was established before an
abnormal market disruption is declared under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Abnormal market disruption. new text end

new text begin (a) The governor may by executive order declare
an abnormal market disruption if, in the governor's sole determination, there has been or is
likely to be a substantial and atypical change in the market for an essential consumer good
or service caused by an event or circumstances that result in a declaration of a state of
emergency by the governor. The governor may specify an effective period for a declaration
under this section that is shorter than the effective period for the state of emergency
declaration.
new text end

new text begin (b) The governor's abnormal market disruption declaration must state that the declaration
is activating this section and must specify the geographic area of Minnesota to which the
declaration applies.
new text end

new text begin (c) Unless an earlier date is specified by the governor, an abnormal market disruption
declaration under this subdivision terminates 30 days after the date that the state of emergency
for which it was activated ends.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin Upon the implementation, renewal, limitation, or termination of an
abnormal market disruption declaration made under subdivision 2: (1) the governor must
immediately post notice on applicable government websites and provide notice to the media;
and (2) the commissioner of commerce must provide notice directly to sellers by any practical
means.
new text end

new text begin Subd. 4. new text end

new text begin Prohibition. new text end

new text begin If the governor declares an abnormal market disruption, a person
is prohibited from selling or offering to sell an essential consumer good or service for an
amount that represents an unconscionably excessive price during the period in which the
abnormal market disruption declaration is effective.
new text end

new text begin Subd. 5. new text end

new text begin Civil penalty. new text end

new text begin A person who is found to have violated this section is subject
to a civil penalty of not more than $1,000 per sale or transaction, with a maximum penalty
of $25,000 per day. No other penalties may be imposed for the same conduct regulated
under this section.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement authority. new text end

new text begin (a) The attorney general may investigate and bring
an action against a seller for an alleged violation of this section.
new text end

new text begin (b) Nothing in this section creates a private cause of action in favor of a person injured
by a violation of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end