SANTA FE, N.M. -- Anti-price-gouging legislation sought by New Mexico Governor Bill Richardson has cleared its first legislative panel on the fifth day of the special session, said the Associated Press.
The State House Judiciary Committee endorsed the measure Monday on a 5 to 4 vote, with Democrats in favor and Republicans opposed.
I'm afraid that it will hurt consumers, rather than protect consumers, State Representative Teresa Zanetti (R) said in an interview after the vote.
Numerous revisions by the [image-nocss] committee resulted in a much more business-friendly bill than the original version. Oil and gas companies, gas station owners and other businesses managed to get some protections addedfor example, making their higher prices defensible if their costs of providing goods or services have risen.
Ruben Baca, executive director of the New Mexico Petroleum Marketers Association (NMPMA), said the version of the bill passed by the committee was livable, but still troubling because it could deter businesses from helping out in an emergency. That was Zanetti's concern, too.
Administration officials said the changes were acceptable to the governor.
It's still a strong bill, said John Wheeler, a lawyer who represented Richardson's office in the negotiations.
The legislation applies only when there have been federal or state disaster or emergency declarations and the governor has issued a 30-day order saying that an abnormal market disruption is likely. That means it would rarely be invoked, supporters said.
This bill does nothing to help people at the pump today...at the pump tomorrow, said Judiciary Chairman Joseph Cervantes (D).
Once the governor issues the order, it would be illegal to sell goods or services for an unconscionable price, defined as being more than 15% above the average price charged by the business during the 20 days prior to the order. Businesses could apply to state district courts for exemptions from that restriction, arguing that it would cause undue hardship or that it could result in catastrophic loss of life or property. Complaints of price-gouging could be brought in court by private citizens or by the attorney general. Courts could order business licenses suspended or revoked, order the profits from price gouging refunded to consumers.
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