1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/03/2024 10:48am
A bill for an act
relating to consumer protection; changing application of abnormal market disruption
and unconscionably excessive price prohibition; amending Minnesota Statutes
2023 Supplement, section 325E.80, subdivisions 1, 5, 6, 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 1, is amended
to read:
(a) For purposes of this section, the terms in this subdivision
have the meanings given.
(b) "Essential consumer good or service" means a good or service that is vital and
necessary for the health, safety, and welfare of the public, including without limitation:
food; water; fuel; gasoline; shelter; construction materials; transportation; health care
services; pharmaceuticals; and medical, personal hygiene, sanitation, and cleaning supplies.
(c) new text begin "Restoration and mitigation services provider" means a person or business that
provides service to prevent further damage to property following a fire, smoke, water, or
storm event. Services include but are not limited to board up of property, water extraction,
drying, smoke or odor removal, cleaning, and personal property inventory, removal, and
storage;
new text end
new text begin (d) new text end "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
goods and services.
new text begin
(e) "Tree trimmer" means a person registered under section 18G.07.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end "Unconscionably excessive price" means a price that represents a gross disparity
compared to the seller's average price of an essential good or service, offered for sale or
sold in the usual course of business, in the 60-day period before an abnormal market
disruption is declared under subdivision 2. None of the following is an unconscionably
excessive price:
(1) a price that is substantially related to an increase in the cost of manufacturing,
obtaining, replacing, providing, or selling a good or service;
(2) a price that is no more than 25 percent above the seller's average price during the
60-day period before an abnormal market disruption is declared under subdivision 2;
(3) a price that is consistent with the fluctuations in applicable commodity markets or
seasonal fluctuations; or
(4) a contract price, or the results of a price formula, that was established before an
abnormal market disruption is declared under subdivision 2.
Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 5, is amended
to read:
Upon the occurrence of a weather event classified as a severe
thunderstorm pursuant to the criteria established by the National Oceanic and Atmospheric
Administration, a residential building contractornew text begin , tree trimmer, or restoration and mitigation
services providernew text end operating within the geographic region impacted by the weather event
and repairing damage caused by the weather event shall not:
(1) charge an unconscionably excessive price for labor in comparison to the market price
charged for comparable services in the geographic region impacted by the weather event;
or
(2) charge an insurance company a rate that exceeds what the residential building
contractornew text begin , tree trimmer, or restoration and mitigation services provider wouldnew text end otherwise
deleted text begin charges membersdeleted text end new text begin charge a membernew text end of the general public.
Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 6, is amended
to read:
A person who is found to have violated deleted text begin this sectiondeleted text end new text begin subdivision
4new text end is subject to a civil penalty of not more than $1,000 per sale or transaction, with a maximum
penalty of $25,000 per day. No other penalties may be imposed for the same conduct
regulated under deleted text begin this sectiondeleted text end new text begin subdivision 4new text end .
Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 7, is amended
to read:
(a) The attorney general may investigate and bring
an action new text begin using the authority under section 8.31 new text end against a seller deleted text begin ordeleted text end new text begin ,new text end residential building
contractornew text begin , tree trimmer, or restoration and mitigation services providernew text end for an alleged
violation of this section.
(b) Nothing in this section creates a private cause of action in favor of a person injured
by a violation of this section.