A Capitol Perspective
A column by State Senator Pat Browne
16th Senatorial District
As we have seen most recently with the hurricanes
that devastated the Gulf Coast, major disasters
usually bring out the best in people as they try to
help their neighbors in need. However, there are
always a few individuals who would rather make a
buck at the expense of those whose lives are
shattered.
When a major disaster strikes, it can have
significant impact across the nation. Certainly, the
effects of the hurricanes were most dramatic in the
Gulf Coast region, but they were also felt in
Lehigh, Monroe and Northampton Counties.
One of the most dramatic effects of the recent
storms was the spike in gasoline prices. In response
to public concerns, the federal Energy Department
set up a hot line to take calls about suspected
price gouging. The agency received more than 26,000
calls since Aug. 28.
In addition, Congress has been busy, conducting
hearings, holding news conferences and drafting
legislation. One bill would make price gouging a
federal offense and heavily fine violators. Another
bill calls for increased fuel efficiency, and still
another would impose a windfall profit tax on oil
companies.
We have been busy in Pennsylvania as well. The
state Senate recently passed legislation that will
allow us to identify those who are exploiting a
crisis, and give the state Attorney General the
tools to go after them. Senate Bill 450 would
prohibit price gouging during, and immediately
after, a state of disaster emergency.
Specifically, Senate Bill 450 would prohibit
"unconscionably excessive" pricing during a declared
state of disaster emergency and 30 days after.
Drafted in cooperation with state Attorney General
Tom Corbett, the measure gives the Attorney General
the authority to investigate possible price gouging
and imposes penalties on violators.
A state of disaster emergency could be the result
of a natural disaster, labor strike, act of
terrorism or other event.
Under the measure, consumers who suspect price
gouging could file a complaint with the Attorney
General's Bureau of Consumer Protection. If an
investigation verifies price gouging, the business
would face civil penalties of up to $10,000.
Pricing would be considered "unconscionably
excessive" if parties within the chain of
distribution (manufacturers, suppliers, wholesalers,
distributors or retailers) increase prices by 20
percent or more over the average price for the same
goods or services available in the affected area in
a week prior to the state of emergency.
The law would not apply to price increases caused
by additional expenses -- such as replacement costs,
taxes and transportation. Instead, it targets
business operators who seek to exploit a disaster
and take advantage of consumers when times are
difficult.
Of course, no legislation can change human
nature. There will always be those who seek to
profit from disasters and emergencies. But, if the
House of Representatives follows the Senate and
approves Senate Bill 450, and the governor signs it
into law, we'll be able to identify those who are
exploiting a crisis, and give the state Attorney
General the tools to go after them.
By providing a process that targets the few
profiteers, we can focus more attention and support
on the vast majority who are trying to lend a
helping hand in a time of crisis.
CONTACT:
Matt Moyer
(610) 821-8468
Senator Browne's office
