SB 5191 — Regulating unfair business practices and prohibiting predatory price increases during states of emergency.

ENGROSSEDZ-0135.1 SUBSTITUTE SENATE BILL 5191 State of Washington 67th Legislature 2021 Regular Session By Senate Law & Justice (originally sponsored by Senators Darneille, King, Billig, Carlyle, Conway, Das, Hasegawa, Hunt, Kuderer, Liias, Lovelett, Nguyen, Nobles, Randall, Salomon, Stanford, and Wilson, C.;

by request of Attorney General)General READRead FIRSTfirst TIMEtime 02/12/21.01/13/21.

Referred to Committee on Law & Justice.

1 ESSBSB 5191 (2) "Consumer food item" means any article used or intended for use for food, drink, confection, or condiment by a person or animal.

(4) "Excessive price" means a price more than 1510 percent greater than the price at which the person sold, rented, or offered for sale or rent the same product or service immediately prior to the state of emergency defined in subsection (13) of this section.

If the seller did not sell, rent, or offer for sale or rent the product or service immediately prior to the onset of the state of emergency defined in subsection (13) of this section, or if the price charged by the person for the product or service prior to the onset of the state of emergency cannot be determined, an excessive price shall be presumed where the price is more than 1510 percent greater than the price of the same product or service offered for sale or rent by other similarly situated sellers prior to the state of emergency defined in subsection (13) of this section.

If a state of emergency as defined in subsection (13) of this section continues for more than one year, the price of the product or service on the anniversary of the state of emergency as defined in subsection (13) of this section must be the new baseline price for determining whether a price is excessive.

(6) "Health care services" means services necessary to provide medical care that are provided or arranged by a temporary staffing services companyagency including, but not limited to, services provided by physicians, physician assistants, nurses, and nursing assistants.

(8) "Medical supplies" includes, but is not limited to, prescription and nonprescription medications, pain relievers, p.infection control and prevention products, bandages, gauze, isopropyl alcohol, and antibacterial products.

2(9) ESSB"Person" 5191means infectionany controlnatural andperson, preventionproprietorship, products,company, bandages,firm, gauze,corporation, isopropyllimited alcohol,liability andcompany, antibacterialpartnership, products.independent contractor, group, unincorporated association, trust, p.

(9)2 "Person"SB means5191 any natural person, proprietorship, company, firm, corporation, limited liability company, partnership, independent contractor, group, unincorporated association, trust, estate, community, agency, institution, joint venture, other business or government organization, or any other legal entity.

(11) "Repair or reconstruction services" means work, labor, or services performed by any person for repairs to residential or commercial property of any type that is damaged as a result of a natural or human-inducedman-made disaster or emergency resulting from an event described in subsection (13) of this section.

(13) "State of emergency" means a natural or man-made disaster resulting from an epidemic, pandemic, earthquake, flood, fire, riot, storm, volcanic eruption, act of war, threat of war, military action, terrorist attack, or any other event for which a state of emergency has been declared by the governor of the state of Washington.Washington or the president of the United States.

(1) ThisThe sectiongovernor shallmay beimplement automaticallythis implementedsection whenby thean governorexecutive declaresorder a state of emergency pursuant to RCW 43.06.010 and 43.06.200 through 43.06.220.

In the event of a state of emergency as defined in section 2 of this act, no person in the county or counties for which an emergency has been declared shall sell, rent, or offer to sell or rent, regardless of whether an actual sale or rental occurs, a good or service listed in this section at an p.excessive price.

3 ESSB 5191 excessive price.

(c)p. Goods or services used for emergency cleanup, regardless of whether the goods or services are listed in this subsection;

3 SB 5191 (c) Goods or services used for emergency cleanup, regardless of whether the goods or services are listed in this subsection;

(2) TheA governorperson shallwho haveincreases a price does not violate this section if the authorityprice increase is attributable to modifyan theadditional listcost imposed by a supplier of goodsa andgood servicesor underservice, subsectionor (1)other costs of thisproviding sectionthe ingood anor executiveservice, orderincluding pursuantan toadditional RCWcost 43.06.220for wherelabor appropriateor inmaterials theused contextto ofprovide a particularproduct emergency.or service.

(3) AIf, in the 60 days prior to the governor's implementation of this section, a person whosold, increasesrented, or offered for sale or rent a pricegood doesor notservice violatelisted in subsection (2) of this section ifat a reduced price which was lower than the price increaseat iswhich attributablethe toperson anordinarily additionalsells, costrents, imposedor byoffers afor suppliersale ofor arent the good or service,service in the area for which the declaration was issued, then the price at which that person ordinarily sells, rents, or otheroffers costsfor ofsale providingor rent the good or service,service includingin anthe additionalarea cost for laborwhich orthe materialsdeclaration was issued shall be used toin providedetermining aif productthe orperson service.is in violation of this section.

(4) If,If in the 60 days prior to the governor's implementation ofreflects thisquarter section,4, aNovember personthrough sold,January, rented,holiday orpricing, offeredthen for sale or rent a good or service listed in subsection (3) of this section at a reduced price which was lower than the price at which the person ordinarily sells, rents, or offers for sale or rent the good or service in the area for which the declaration was issued, then the price at which that person ordinarily sells, rents, or offers for sale or rent the good or service in the area for which the declaration was issued shall be usedbased inon determiningquarter if3, theAugust personthrough isOctober. in violation of this section.

(5)NEW IfSECTION. the 60 days prior to the governor's implementation reflects quarter 4, November through January, holiday pricing, then the price at which the person ordinarily sells, rents, or offers for sale or rent the good or service in the area in which the declaration was issued shall be based on quarter 3, August through October.

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(2) The attorney general may issue a cease and desist letterorder to any person to restrain and prevent violations of this chapter.

If the recipient of a cease and desist letterorder does not comply within five calendarp. days of receipt of the letter, the attorney general may file an action in superior court at any time thereafter to enforce the cease and desist letter.

If4 theSB court5191 findscalendar thatdays theof personreceipt violatedof thisthe chapterorder, and failed to comply with a cease and desist letter, the courtattorney shallgeneral enjoinmay thefile personan fromaction engaging in conductsuperior thatcourt violatesat thisany chaptertime andthereafter shallto imposeenforce a civil penalty of not more than $10,000 per violation of the cease and desist letter.order.

InIf anythe successfulcourt actionfinds that the person violated this chapter and failed to enforcecomply with a cease and desist letterorder, under this chapter, the court shall awardenjoin the attorneyperson generalfrom theengaging costsin conduct that violates this chapter and shall impose a civil penalty of bringingnot themore action,than including$10,000 reasonableper investigativeviolation costsof andthe reasonablecease attorneys'and fees.desist order.

In any successful action to enforce a cease and desist order under this chapter, the court shall award the attorney general the costs of bringing the action, including reasonable investigative costs and reasonable attorneys' fees.

No additional civil penalty shall be assessed for the same violation under the consumer protection act pursuant to RCW 19.86.140.

A violation of this chapter, including, but not limited to, a violation of a cease and desist letterorder issued pursuant to subsection (2) of this section, is not reasonable in relation to the development and preservation of business, and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act.

Upon application of this act, the office of the attorney general shall produce and maintain on its website translated versions of this act in the top 10 languages spoken in p.Washington state and, at the discretion of the office of the attorney general, other languages as requested or needed to support small businesses that are either owned or operated, or both, by individuals who have limited English language proficiency.

5 ESSB 5191 Washington state and, at the discretion of the office of the attorney general, other languages as requested or needed to support small businesses that are either owned or operated, or both, by individuals who have limited English language proficiency.

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