G:\M\16\SMITMO\SMITMO_063.XML ..................................................................... (Original Signature of Member) H. R. ll 116TH CONGRESS 2D SESSION To prohibit price gouging during a state of emergency declaration, and for other purposes. IN THE HOUSE OF REPRESENTATIVES Mr. SMITH of Missouri introduced the following bill; which was referred to the Committee on llllllllllllll A BILL To prohibit price gouging during a state of emergency declaration, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the ‘‘Preventing Pandemic 5 Profiting Act’’. 6 SEC. 2. PROHIBITION. 7 (a) IN GENERAL.—Chapter 11 of title 18, United 8 States Code, is amended by inserting after section 220 the 9 following: g:\VHLC\031120\031120.334.xml March 11, 2020 (2:49 p.m.) VerDate Mar 15 2010 14:49 Mar 11, 2020 Jkt 000000 (758344 2) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\USERS\EMBROWN\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\SMITMO_06 G:\M\16\SMITMO\SMITMO_063.XML 2 1 ‘‘§ 221. Price gouging during a state of emergency 2 3 declaration ‘‘(a) IN GENERAL.—Whoever, in any location that 4 has received a state of emergency declaration, knowingly 5 sells or offers for sale, during the effective period of such 6 declaration, any goods or services identified by the Sec7 retary of Health and Human Services as vital and nec8 essary for the health, safety, and welfare of consumers, 9 including medical treatment, at an unconscionably exces10 sive price, shall be fined not more than $1,000, imprisoned 11 not more than 5 years, or both. 12 ‘‘(b) DEFINITIONS.—In this section: 13 ‘‘(1) STATE 14 The term ‘state of emergency declaration’ means— 15 ‘‘(A) a public health emergency declaration 16 under section 319 of the Public Health Service 17 Act; 18 ‘‘(B) a major disaster declaration under 19 section 401 of the Robert T. Stafford Disaster 20 Relief and Emergency Assistance Act; or 21 ‘‘(C) an emergency declaration under sec- 22 tion 501 of the Robert T. Stafford Disaster Re- 23 lief and Emergency Assistance Act. 24 ‘‘(2) UNCONSCIONABLY 25 14:49 Mar 11, 2020 EXCESSIVE PRICE.— The term ‘unconscionably excessive price’— g:\VHLC\031120\031120.334.xml March 11, 2020 (2:49 p.m.) VerDate Mar 15 2010 OF EMERGENCY DECLARATION.— Jkt 000000 (758344 2) PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 C:\USERS\EMBROWN\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\SMITMO_06 G:\M\16\SMITMO\SMITMO_063.XML 3 1 ‘‘(A) means a price higher than the aver- 2 age price at which goods or services were sold 3 or offered for sale during the 30-day period 4 prior to the date on which a state of emergency 5 declaration is made; and 6 ‘‘(B) does not include— 7 ‘‘(i) an increased price that reflects an 8 increase in cost of acquiring, producing, 9 selling, transporting, and delivering goods, 10 plus the average profit margin during the 11 30-day period prior to the date on which a 12 state of emergency declaration is made; or 13 ‘‘(ii) any price agreed to by a seller 14 and consumer prior to the date on which 15 a state of emergency declaration is made.’’. 16 (b) CLERICAL AMENDMENT.—The table of sections 17 for chapter 11 of title 18, United States Code, is amended 18 by inserting after the item related to section 220 the fol19 lowing: ‘‘221. Price gouging.’’. 20 (c) APPLICATION.—This Act and the amendments 21 made by this Act shall apply with respect to conduct oc22 curring on or after the date of enactment of this Act. g:\VHLC\031120\031120.334.xml March 11, 2020 (2:49 p.m.) VerDate Mar 15 2010 14:49 Mar 11, 2020 Jkt 000000 (758344 2) PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 C:\USERS\EMBROWN\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\SMITMO_06