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The measure, Senate Bill 1932, would prohibit unjustified price
increases on essential goods and services in disaster areas for
45 days after the governor or U.S. president declares a state of
emergency.
“Tornadoes are common in Illinois, so imagine one destroys your
home and you go to the store to purchase diapers only to find
the price has tripled,” said the bill’s sponsor, state Sen. Suzy
Glowiak Hilton, D-Western Springs. “For some, that’s just not
feasible.”
The bill says a price increase of 20% or more during a disaster
is considered unconscionably high, unless it can be attributed
to increased costs on behalf of the seller. Items covered by the
bill include building materials, food, medical and emergency
supplies, and repair, storage and transportation services.
State Sen. Jason Plummer, R-Edwardsville, has a problem with
that price increase threshold.
“If you look at any business model, 20% swings in insurance, 20%
swings in commodity products, 20% swings in all kinds of things
happen regularly,” said Plummer.
While 39 states have regulations against price gouging during
disasters, Illinois limits its protections to excessive costs of
petroleum products.
Plummer said sometimes things sound good in theory and they
cause disasters in practice, and this piece of legislation is
exactly that.
“You're going to turn the attorney general’s office and who
knows who else loose on small and medium businesses around the
state,” said Plummer. “It’s well intended but this is going to
be a disaster for the people trying to provide goods and
services in all our districts, and it’s going to create a
litigation nightmare for them.”
The bill passed the Senate and is now headed to the House for
consideration. |
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