Senator Codell Cleare, D-New York, who proposed the version of the bill in the state senate.

State lawmakers are again attempting to create harsher penalties for businesses that take advantage of market instability and keep prices unnecessarily high.

Legislation (S.9372) proposed by Sen. Cordelle Cleare, D-New York City, proposes criminal charges as an option for price gouging, along with some increased civil penalties as well. The legislation states an abnormal disruption of the market will include any change in the market, whether actual or imminently threatened, resulting from the weather, power failure or shortage of power, strike, civil disorder, war, military action, national or local emergency, drug shortage, or other issue that results in an emergency declaration.

The legislation further stated that the determination of whether or not prices will be deemed ‘excessive’ will be determined by court, but set definitions to aid in this determination. The bill stated that violations shall be determined based on if the amount of the excess in price is unconscionably extreme or that there was an exercise of unfair leverage or unconscionable means. The Attorney General’s office would prosecute cases.

The legislation draws reference in justification to the prices following certain large-scale tragedies, specifically noting hurricanes such as Katrina and Sandy. The assembly bill justified the change by having noted the exorbitant prices of gasoline that rose far beyond a justifiable amounts for the market disruption that occurred. The justification noted that this concern is not specific to any region, instead extending across the state with residents all over being worried over the price at the pump. This would extend the power of District Attorneys, to help these people better protect their constituents.

“By bolstering the price gouging law, the state is ensuring that we will pursue those who attempt to illegally profit and seek severe penalties from those who are found to have violated the law. Any seller in the chain of distribution who prices goods well above the average level for a given area has some explaining to do.

“We must avoid the kinds of behavior we saw immediately following 9/11 and the 2005 hurricanes, when some service station owners drastically increased the pump price because of unfounded supply fears, and some motorists engaged in panic buying,” said Assemblyman Jeffrey Dinowitz, D-Bronx, who has sponsored companion legislation n the state Assembly. “We must ensure that the proper enforcement mechanisms are in place to deter price gouging during current and future crises. There must be zero tolerance for people breaking the law during an emergency.”