94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4107

 

Introduced 9/12/2005, by Rep. Bill Mitchell

 

SYNOPSIS AS INTRODUCED:
 
New Act
815 ILCS 505/2Z   from Ch. 121 1/2, par. 262Z
815 ILCS 505/10a   from Ch. 121 1/2, par. 270a

    Creates the Consumer Protection Fuel Price Gouging Act. Provides that, upon a declaration of disaster by the Governor, it is unlawful for any motor-fuel vendor to sell or offer to sell motor fuel within the State at a price that is increased because of the vendor's knowledge of a perceived disruption in the motor-fuel market. An increase in the price of motor fuel during the period of a disaster declaration is rebuttably presumed to be based upon the vendor's knowledge of a perceived disruption in the motor-fuel market if: (1) the amount charged represents a gross disparity between the price at which the motor fuel was readily obtainable within the vendor's trade area during the 7 days immediately before the disaster declaration; and (2) the increase in the amount charged is not attributable to cost factors to the vendor, including replacement costs, taxes, and transportation costs incurred by the vendor. Provides that a violation of this Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act, but nothing in this Act creates a private cause of action in favor of any person damaged by a violation of this Act, but individuals may complain to the Attorney General. Preempts home rule. Amends the Consumer Fraud and Deceptive Business Practices Act to make corresponding changes. Effective immediately.


LRB094 14073 BDD 48982 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4107 LRB094 14073 BDD 48982 b

1     AN ACT concerning motor fuel.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Consumer Protection Fuel Price Gouging Act.
 
6     Section 5. Definitions. As used in this Act:
7     "Distributor" has the definition set forth in Section 1.2
8 of the Motor Fuel Tax Law.
9     "Motor fuel" has the definition set forth in Section 1.1 of
10 the Motor Fuel Tax Law.
11     "Motor-fuel vendor" or "vendor" means a distributor,
12 supplier, receiver, reseller, or retailer.
13     "Receiver" has the definition set forth in Section 1.20 of
14 the Motor Fuel Tax Law.
15     "Reseller" has the definition set forth in Section 1.21 of
16 the Motor Fuel Tax Law.
17     "Retailer" means a person who holds himself or herself out
18 as being engaged (or who habitually engages) in selling motor
19 fuel at retail.
20     "Supplier" has the definition set forth in Section 1.14 of
21 the Motor Fuel Tax Law.
 
22     Section 10. Motor fuel emergency declarations;
23 unconscionable prices prohibited.
24     (a) Upon a declaration of a disaster by the Governor under
25 Section 7 of the Illinois Emergency Management Agency Act, it
26 is unlawful for any motor-fuel vendor to sell or offer to sell
27 motor fuel within the State at a price that is increased
28 because of the vendor's knowledge of a perceived disruption in
29 the motor-fuel market.
30     (b) An increase in the price of motor fuel during the
31 period of a disaster declaration is rebuttably presumed to be

 

 

HB4107 - 2 - LRB094 14073 BDD 48982 b

1 based upon the vendor's knowledge of a perceived disruption in
2 the motor-fuel market if:
3         (1) the amount charged represents a gross disparity
4     between the price at which the motor fuel was readily
5     obtainable within the vendor's trade area during the 7 days
6     immediately before the disaster declaration; and
7         (2) the increase in the amount charged is not
8     attributable to cost factors to the vendor, including
9     replacement costs, taxes, and transportation costs
10     incurred by the vendor.
11     (c) A price increase approved by an appropriate government
12 agency is not a violation of this Section.
 
13     Section 15. Construction with the Consumer Fraud and
14 Deceptive Business Practices Act. A violation of this Act
15 constitutes a violation of the Consumer Fraud and Deceptive
16 Business Practices Act, and the Attorney General may take any
17 action consistent with the provisions of that Act.
18 Notwithstanding Section 10a of the Consumer Fraud and Deceptive
19 Business Practices Act, however, nothing in this Act creates a
20 private cause of action in favor of any person damaged by a
21 violation of this Act, but individuals may make a complaint to
22 the Attorney General alleging a violation of this Act.
 
23     Section 35. Home rule. The regulation of motor fuel prices
24 during a disaster is an exclusive power and function of the
25 State. A unit of local government, including a home rule unit,
26 may not regulate the price of motor fuel during a disaster, as
27 declared by the Governor. This Section is a denial and
28 limitation of home rule powers and functions under subsection
29 (h) of Section 6 of Article VII of the Illinois Constitution.
 
30     Section 900. The Consumer Fraud and Deceptive Business
31 Practices Act is amended by changing Sections 2Z and 10a as
32 follows:
 

 

 

HB4107 - 3 - LRB094 14073 BDD 48982 b

1     (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
2     Sec. 2Z. Violations of other Acts. Any person who knowingly
3 violates the Automotive Repair Act, the Automotive Collision
4 Repair Act, the Home Repair and Remodeling Act, the Dance
5 Studio Act, the Physical Fitness Services Act, the Hearing
6 Instrument Consumer Protection Act, the Illinois Union Label
7 Act, the Job Referral and Job Listing Services Consumer
8 Protection Act, the Travel Promotion Consumer Protection Act,
9 the Credit Services Organizations Act, the Automatic Telephone
10 Dialers Act, the Pay-Per-Call Services Consumer Protection
11 Act, the Telephone Solicitations Act, the Illinois Funeral or
12 Burial Funds Act, the Cemetery Care Act, the Safe and Hygienic
13 Bed Act, the Pre-Need Cemetery Sales Act, the High Risk Home
14 Loan Act, the Payday Loan Reform Act, subsection (a) or (b) of
15 Section 3-10 of the Cigarette Tax Act, the Payday Loan Reform
16 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
17 Tax Act, the Electronic Mail Act, paragraph (6) of subsection
18 (k) of Section 6-305 of the Illinois Vehicle Code, Article 3 of
19 the Residential Real Property Disclosure Act, the Automatic
20 Contract Renewal Act, the Consumer Protection Fuel Price
21 Gouging Act, or the Personal Information Protection Act commits
22 an unlawful practice within the meaning of this Act.
23 (Source: P.A. 93-561, eff. 1-1-04; 93-950, eff. 1-1-05; 94-13,
24 eff. 12-6-05; 94-36, eff. 1-1-06; 94-280, eff. 1-1-06; 94-292,
25 eff. 1-1-06; revised 8-19-05.)
 
26     (815 ILCS 505/10a)  (from Ch. 121 1/2, par. 270a)
27     Sec. 10a. Action for actual damages.
28     (a) Any person who suffers actual damage as a result of a
29 violation of this Act committed by any other person may bring
30 an action against such person. The court, in its discretion may
31 award actual economic damages or any other relief which the
32 court deems proper; provided, however, that no award of
33 punitive damages may be assessed under this Section against a
34 party defendant who is a new vehicle dealer or used vehicle
35 dealer within the meaning of Chapter 5 of the Illinois Vehicle

 

 

HB4107 - 4 - LRB094 14073 BDD 48982 b

1 Code or who is the holder of a retail installment contract
2 within the meaning of Section 2.12 of the Motor Vehicle Retail
3 Installment Sales Act, unless the conduct engaged in was
4 willful or intentional and done with evil motive or reckless
5 indifference to the rights of others. Proof of a public injury,
6 a pattern, or an effect on consumers and the public interest
7 generally shall be required in order to state a cause of action
8 under this Section against a party defendant who is a new
9 vehicle dealer or used vehicle dealer within the meaning of
10 Chapter 5 of the Illinois Vehicle Code or who is the holder of
11 a retail installment contract within the meaning of Section
12 2.12 of the Motor Vehicle Retail Installment Sales Act. Proof
13 of such public injury may be shown by any one of the following
14 factors:
15         (1) Violation of a statute that has a public interest
16     impact.
17         (2) Repeated acts prior to the act involving the
18     plaintiff.
19         (3) Potential for repetition.
20     (b) Such action may be commenced in the county in which the
21 person against whom it is brought resides, has his principal
22 place of business, or is doing business, or in the county where
23 the transaction or any substantial portion thereof occurred.
24     (c) Except as provided in subsections (f), (g), and (h) of
25 this Section, in any action brought by a person under this
26 Section, the Court may grant injunctive relief where
27 appropriate and may award, in addition to the relief provided
28 in this Section, reasonable attorney's fees and costs to the
29 prevailing party.
30     (d) Upon commencement of any action brought under this
31 Section the plaintiff shall mail a copy of the complaint or
32 other initial pleading to the Attorney General and, upon entry
33 of any judgment or order in the action, shall mail a copy of
34 such judgment or order to the Attorney General.
35     (e) Any action for damages under this Section shall be
36 forever barred unless commenced within 3 years after the cause

 

 

HB4107 - 5 - LRB094 14073 BDD 48982 b

1 of action accrued; provided that, whenever any action is
2 brought by the Attorney General or a State's Attorney for a
3 violation of this Act, the running of the foregoing statute of
4 limitations, with respect to every private right of action for
5 damages which is based in whole or in part on any matter
6 complained of in said action by the Attorney General or State's
7 Attorney, shall be suspended during the pendency thereof, and
8 for one year thereafter.
9     (f) At any time more than 30 days before the commencement
10 of trial, a party, who is a new vehicle dealer or used vehicle
11 dealer within the meaning of Chapter 5 of the Illinois Vehicle
12 Code or who is the holder of a retail installment contract
13 within the meaning of Section 2.12 of the Motor Vehicle Retail
14 Installment Sales Act and who is defending a claim under this
15 Act, may serve upon the party seeking relief under this Act an
16 offer to allow judgment to be taken against the defending party
17 to the effect specified in the offer with costs then accrued.
18 If within 10 days after service of the offer, the offeree
19 serves written notice that the offer is accepted, either party
20 may then file the offer and notice of acceptance together with
21 proof of service of the notice; the court shall then enter
22 judgment. An offer not accepted shall be deemed withdrawn and
23 evidence of the offer is not admissible except in a proceeding
24 to determine costs. When a party seeking relief under this Act
25 does not accept an offer filed with the clerk and served upon
26 the attorney for that party more than 30 days before the
27 commencement of trial and when that party fails to obtain a
28 judgment in an amount more than the total offer of settlement,
29 that party shall forfeit and the court may not award any
30 compensation for attorney's fees and costs incurred after the
31 date of the offer.
32     (g) At any time more than 30 days before the commencement
33 of trial, a party who is seeking relief under this Act from a
34 new vehicle dealer or used vehicle dealer within the meaning of
35 Chapter 5 of the Illinois Vehicle Code or from the holder of a
36 retail installment contract within the meaning of Section 2.12

 

 

HB4107 - 6 - LRB094 14073 BDD 48982 b

1 of the Motor Vehicle Retail Installment Sales Act may serve the
2 dealer or holder an offer to allow judgment to be taken against
3 the dealer or holder to the effect specified in the offer with
4 costs then accrued. If within 10 days after service of the
5 offer, the offeree serves written notice that the offer is
6 accepted, either party may then file the offer and notice of
7 acceptance together with proof of service of the notice; the
8 court shall then enter judgment. An offer not accepted shall be
9 deemed withdrawn and evidence of the offer is not admissible
10 except in a proceeding to determine costs. When a dealer or
11 holder does not accept an offer filed with the clerk and served
12 upon the attorney for the dealer or holder more than 30 days
13 before the commencement of trial and if the party seeking
14 relief against a dealer or holder obtains a judgment in an
15 amount equal to or in excess of the offer amount, the party
16 seeking relief shall be paid interest on the offer amount at
17 the rate as provided in Section 2-1303 of the Code of Civil
18 Procedure from the date of the offer until the judgment is
19 paid.
20     (h) At least 30 days prior to the filing of an action under
21 this Section, a party who is seeking relief shall serve a
22 written notice of the nature of the alleged violation and
23 demand for relief upon the prospective party, who is a new
24 vehicle dealer or used vehicle dealer within the meaning of
25 Chapter 5 of the Illinois Vehicle Code or who is the holder of
26 a retail installment contract within the meaning of Section
27 2.12 of the Motor Vehicle Retail Installment Sales Act, against
28 whom such action will be commenced. Any person receiving such a
29 demand for relief may, within 30 days of service of the demand
30 for relief, submit a written offer of settlement, which offer
31 is to be exclusive of attorney's fees, to the party serving the
32 notice and demand. The party who is seeking relief must certify
33 in any cause of action that the notice and demand was served
34 upon the named defendants and the substance of their response,
35 if any. If the offer of settlement is rejected in writing by
36 the party who is seeking relief, then, in any subsequent

 

 

HB4107 - 7 - LRB094 14073 BDD 48982 b

1 action, the court shall deny any award of attorney's fees and
2 costs requested by the party seeking relief under this Act
3 incurred after the rejection of the written offer of
4 settlement, if the judgment is less than the amount contained
5 within the offer of settlement. All written offers of
6 settlement under this subsection shall be presumed to be
7 offered without prejudice in compromise of a disputed matter.
8     (i) This Section does not apply to any violation of the
9 Consumer Protection Fuel Price Gouging Act.
10 (Source: P.A. 91-270, eff. 1-1-00.)
 
11     Section 999. Effective date. This Act takes effect upon
12 becoming law.