LRB-4395/1
MGG:hmh:jf
2001 - 2002 LEGISLATURE
January 31, 2002 - Introduced by Representatives Kedzie, Krusick, Urban, Owens,
Sinicki, Gronemus, Lassa, Seratti, Sykora, Freese, Ryba, Staskunas and
Huebsch, cosponsored by Senators Darling, Wirch and Kanavas. Referred to
Committee on Small Business and Consumer Affairs.
AB762,1,3
1An Act to create 100.305 of the statutes;
relating to: sales of consumer goods
2and services during periods of abnormal economic disruption, requiring the
3exercise of rule-making authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill prohibits the sale in this state of consumer goods and services at
unreasonably excessive prices during a period of abnormal economic disruption
caused by an emergency. Under the bill, an emergency includes a destructive act of
nature, a hostile action, terrorism, or a disruption of energy supplies that poses a risk
to public's economic well-being, public health, or welfare. The prohibition is only in
effect if the governor, by executive order, certifies that a period of abnormal economic
disruption exists. The bill defines consumer goods and services to be those that are
used primarily for personal, family, or household purposes. The prohibition applies
to all wholesale and retail sales of consumer goods and services. Under the bill, the
department of agriculture, trade and consumer protection (DATCP) must
promulgate rules to establish formulas or other standards to be used in determining
what are unreasonably excessive wholesale and retail prices.
For an initial violation of this prohibition, the bill requires that DATCP issue
a warning notice instead of filing an action against the seller. If the seller fails to
comply with the warning notice or subsequently violates the prohibition after
receiving the notice, DATCP, or the department of justice (DOJ) after consulting with
DATCP, may file a court action to enjoin the seller from violating the prohibition or
to recover a forfeiture of not more than $10,000, or DATCP or DOJ may seek both the
injunction and the forfeiture.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB762, s. 1
1Section
1. 100.305 of the statutes is created to read:
AB762,2,3
2100.305 Prohibited selling practices during periods of abnormal
3economic disruption. (1) Definitions. In this section:
AB762,2,54
(a) "Consumer goods or services" means goods or services that are used
5primarily for personal, family, or household purposes.
AB762,2,66
(b) "Emergency" includes any of the following:
AB762,2,77
1. A tornado, flood, fire, storm, or other destructive act of nature.
AB762,2,98
2. A disruption of energy supplies to the degree that a serious risk is posed to
9the economic well-being, health, or welfare of the public.
AB762,2,1010
3. Hostile action.
AB762,2,1111
4. A strike or civil disorder.
AB762,2,1312
(c) "Hostile action" means an act of violence against a person or property in the
13United States by a foreign power or by a terrorist.
AB762,2,1614
(d) "Period of abnormal economic disruption" means a period of time during
15which normal business transactions in the state are disrupted, or are threatened to
16be disrupted, due to an emergency.
AB762,2,1717
(e) "Seller" means a manufacturer, supplier, wholesaler, distributor, or retailer.
AB762,2,21
18(2) Prohibition. No seller may sell, or offer to sell, in this state at wholesale
19or at retail, consumer goods or services at unreasonably excessive prices if the
20governor, by executive order, has certified that the state is in a period of abnormal
21economic disruption.
AB762,3,3
1(3) Rules. The department shall promulgate rules to establish formulas or
2other standards to be used in determining whether a wholesale or retail price is
3unreasonably excessive.
AB762,3,6
4(3m) Warning notice. If a person violates sub. (2), the department shall issue
5a warning notice to the seller. The warning notice shall specify the action that the
6seller is required to take in order to not be in violation of sub. (2).
AB762,3,11
7(4) Penalties. If a warning notice under sub. (3m) has been issued to a seller,
8and the seller either fails to take the required action that is specified in the notice
9or subsequently violates sub. (2), the department, or the department of justice after
10consulting with the department, may commence an action in the name of the state
11to do either or both of the following:
AB762,3,1212
(a) Recover a civil forfeiture of not more than $10,000 from the seller.
AB762,3,1413
(b) Temporarily or permanently restrain or enjoin the seller from violating sub.
14(2).
