AB 44 — Prohibits manipulating the price of an essential good or service in this State. (BDR 52-503)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

4444–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

44–COMMITTEE ON C OMMERCE AND LABOR (O NB EHALF OF THE ATTORNEY GENERAL ) PREFILED N OVEMBER 19, 2024 ____________ Referred to Committee on Commerce and Labor SUMMARY—Prohibits manipulating the price of an essential good or service in this State.

(BDR 52-503) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegiThe Counsel’sNevada Digest:Unfair Trade Practice Act sets forth various activities that constitute an unlawful contract, combination or conspiracy in restraint of trade and authorizes the Attorney General to investigate and take certain actions against persons who engage in such activities, which may include, without limitation, criminal prosecution and the imposition of civil penalties.

The Nevada Unfair Trade Practice Act sets forth various activities that authorizes the Attorney General to investigate and take certain actions againste and persons who engage in such activities, which may include, without limitation, criminal prosecution and the imposition of civil penalties.

(NRS 598A.280) This bill includes among the activities that constitute an unlawful contract, combination or conspiracy in restraint of trade manipulating the price of service”an toessential mean any good or service whichin isthis neededState. on a daily or recurring basis for the livelihood of a person and which falls within certain specified categories of goods and services.

SectionThis 1 of this bill providesdefines that“essential a person manipulates the price of an essential good or servicefor when the person,livelihood alone or in concert with others, knowingly engages in any deceptive trade practice which is intended to and does cause the price of an essential good or service in this State to increase in a results in a person paying,and over a 1-year period, an amount for the good or service which representsfalls awithin percentage increase over the amount paid by the person over the immediately preceding year that is equal to or greater than the average percentage - *AB44_R1* – 2 – increase for the most recent 5-year average annual percentage change for the category of good or service, as set forth in the Personal Consumption Expenditures by State (SAPCE3) for the State of Nevada as published by the Bureau of forth certain exceptionsspecified fromcategories the prohibition against manipulating the price of angoods essentialand goodservices. or service.

ExistingSection law,1 withof certainthis exceptions,bill authorizesprovides that a person whomanipulates isthe injuredprice orof damaged,an oressential threatenedgood with injury or damage,service bywhen athe violationperson, ofalone theor Nevadain Unfairconcert Tradewith Practiceothers, Actknowingly toengages bringin anany actiondeceptive totrade obtainpractice certainwhich: relief.

(NRS(1) 598A.210)involves ofconduct anengaged essentialin goodby orthe serviceperson doeither notwith establishthe aintent privateto rightmislead consumers or for the purpose of actionmanipulating againstthe anymarket person.for an essential good or service;

and (2) is intended to and does cause the price of an essential good or service in this State to increase in a manner that does not reflect the basic forces of supply and demand and results in a person paying, over a 1-year period, an amount for the good or over the immediately preceding year that is equal to or greater than the averagen percentage increase for the most recent 5-year average annual percentage change for the category of good or service, as set forth in the Personal Consumption Expenditures by State (SAPCE3) for the State of Nevada as published by the Bureau of Economic Analysis of the United States Department of Commerce.

Section 1 sets forth certain exceptions from the prohibition against manipulating the price of an essential good or service.

Existing law, with certain exceptions, authorizes a person who is injured or damaged, or threatened with injury or damage, by a violation of the Nevada Unfair Sections 1 and 2 of this bill provide that the provisions relating to the manipulation of an essential good or service do not establish a private right of action against any person.

- 83rd Session (2025) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(2)services.) Agreements to establish prices for commodities or services.(3) Agreements to establish uniform discounts, or to eliminate discounts.

(3) Agreements to establish uniform discounts, or to eliminate discounts.

(12) Bid rigging, including the misuse of bid depositories, foreclosures of competitive activity for a period of time, rotation of jobs among competitors, submission of identical bids, and - *AB44_R1* – 3 – submission of complementary bids not intended to secure acceptance by the customer.

(14) Agreements to restrict volume of production.

(c)- Allocation83rd Session (2025) – 3 – to specified customers of customers,a consistingcompetitor.ing of agreements not to sell to(d) specifiedTying customersarrangements, consisting of acontracts competitor.in which the seller or lessor conditions the sale or lease of commodities or services on the purchase or leasing of another commodity or service.

(d) Tying arrangements, consisting of contracts in which the seller or lessor conditions the sale or lease of commodities or services on the purchase or leasing of another commodity or service.

(f) ManipulatingExcept as otherwise provided in subsection 2, manipulating the price of an essential good or service in this State.

For the purposes of this paragraph, a person manipulates the price of an essential good or service in this State when the person, alone or in concert with others, knowingly engages in any deceptive trade practice in violation of NRS 598.0903 to 598.0999, inclusive, whichwhich: is intended to and does cause the price of an essential good or service in this State to increase in a manner that:

(1) DoesInvolves notconduct reflectengaged basicin forcesby ofthe supplyperson andeither demand;with manipulating the market for an essential good or service in this State to the detriment of the public;

and (2) ResultsIs inintended ato personand paying,does overcause athe 1-yearprice period,of an amountessential for the good or service whichin representsthis aState percentage increase over the amount paid by the person over the immediately preceding year that is equal to or greater than the average percentage increase for the most recent 5-year average annual percentage change for the category of good or service, as set forth in thea Personalmanner Consumptionthat: Expenditures by State (SAPCE3) for the State of Nevada, as published by the Bureau of Economic Analysis of the United States Department of Commerce.

(g)(I) ExceptDoes asnot otherwisereflect providedbasic inforces subsection [2,] 4, consolidation, conversion, merger, acquisition of sharessupply ofand stockdemand; or other equity interest, directly or indirectly, of another person engaged in commerce in this State or the acquisition of any assets of another person engaged in commerce in this State that may:

and (II) Results in a person paying, over a 1-year period, an amount for the good or service which represents a percentage increase over the amount paid by the person over the immediately preceding year that is equal to or greater than the average percentage increase for the most recent 5-year average annual percentage change for the category of good or service, as set forth in the Personal Consumption Expenditures by State (SAPCE3) for the State of Nevada, as published by the Bureau of Economic Analysis of the United States Department of Commerce.

consolidation, conversion, merger, acquisition of shares of stock or other equity interest, directly or indirectly, of another person engaged in commerce in this State or the acquisition of any assets of another person engaged in commerce in this State that may:

or - *AB44_R1* – 4 – (2) Substantially lessen competition or be in restraint of trade.

- 83rd Session (2025) – 4 – 2.

(1) This State;

Nothing in the provisions of paragraph (f) of subsection 1 shall be construed to prohibit a person from reducing the price charged by the person for an essential good or service in this State for a limited period as part of a time-limited sale or promotion that has been advertised as such or from engaging in any other conduct that does not constitute a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

5.

(b) Prevent a person who is engaged in commerce in this State from forming a subsidiary corporation or other businessbusinesshis State organization and owning and holding all or part of the stock or equity interest of that corporation or organization.