COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3626-01
Bill No.: SB 857
Subject: Consumer Protection; Merchandising Practices
Type: Original
Date: January 8, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Office of State Courts Administrator assume the proposed legislation would have no fiscal impact on the courts.
Officials from the Office of Attorney General assume the costs of the proposed legislation could be absorbed within existing resources.
Officials from the Office of Prosecution Services (OPS) assume the proposal could increase the caseloads of prosecutors because it creates a new remedy. OPS assumes the increase should be less than $100,000. However, passage of numerous bills creating new crimes could have a greater fiscal impact on the prosecutors.
Oversight assumes assume the OPS could absorb the cost of the proposed legislation within existing resources.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
The proposal could have a fiscal impact on small businesses found guilty of price gouging during a state of emergency.
DESCRIPTION
The proposed legislation would create a price gouging law. During a declared state of emergency, a person would commit price gouging if he or she advertises or charges an excessive DESCRIPTION (continued)
price for necessities. A person suspected of price gouging would have an affirmative defense if he or she can provide written documentation that the price of the necessity was increased due to an increase in the cost to obtain the necessity and the price increase was beyond the person's control.
A person engaging in price gouging would be liable for three times the amount unfairly received in each transaction.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Attorney General
Office of State Courts Administrator
Office of Prosecution Services
Mickey Wilson, CPA
Acting Director
January 8, 2002