[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5253 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5253
To prohibit price gouging in the sale of gasoline, diesel fuel, crude
oil, and home heating oil, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 2, 2006
Mrs. Wilson of New Mexico (for herself, Mr. Bass, Mr. Shays, Mr. Hall,
Mr. Deal of Georgia, Mr. Bilirakis, Mr. Shimkus, Mr. Pitts, Mr.
Norwood, Mr. Burgess, Mrs. Bono, Mr. Buyer, Mr. Rogers of Michigan, Mr.
Chocola, Mr. Bradley of New Hampshire, Mr. Ferguson, Mrs. Cubin, Mr.
Walden of Oregon, Mrs. Johnson of Connecticut, Mr. Sullivan, Mr. Upton,
Mr. Barton of Texas, and Mr. Wamp) introduced the following bill; which
was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To prohibit price gouging in the sale of gasoline, diesel fuel, crude
oil, and home heating oil, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Energy Price Protection Act
of 2006''.
SEC. 2. GASOLINE PRICE GOUGING PROHIBITED.
(a) Unlawful Conduct.--
(1) Unfair and deceptive act or practice.--It shall be an
unfair or deceptive act or practice in violation of section 5
of the Federal Trade Commission Act for any person to sell
crude oil, gasoline, diesel fuel, home heating oil, or any
biofuel at a price that constitutes price gouging as defined by
rule pursuant to subsection (b).
(2) Definition.--For purposes of this subsection, the term
``biofuel'' means any fuel containing any organic matter that
is available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses, residues,
fibers, and animal wastes, municipal wastes, and other waste
materials.
(b) Price Gouging.--
(1) In general.--Not later than 6 months after the date of
the enactment of this Act, the Federal Trade Commission shall
promulgate, in accordance with section 553 of title 5, United
States Code, any rules necessary for the enforcement of this
section.
(2) Contents.--Such rules--
(A) shall define ``price gouging'', ``retail
sale'', and ``wholesale sale'' for purposes of this
Act; and
(B) shall be consistent with the requirements for
declaring unfair acts or practices in section 5(n) of
the Federal Trade Commission Act (15 U.S.C. 45(n)).
(c) Enforcement.--
(1) In general.--Except as provided in subsection (d), a
violation of subsection (a) shall be treated as a violation of
a rule defining an unfair or deceptive act or practice
prescribed under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade
Commission shall enforce this Act in the same manner, by the
same means, and with the same jurisdiction as though all
applicable terms and provisions of the Federal Trade Commission
Act were incorporated into and made a part of this Act.
(2) Exclusive enforcement.--Notwithstanding any other
provision of law, no person, State, or political subdivision of
a State, other than the Federal Trade Commission or the
Attorney General of the United States to the extent provided
for in section 5 of the Federal Trade Commission Act or the
attorney general of a State as provided by subsection (d),
shall have any authority to enforce this Act or any rule
prescribed pursuant to this Act.
(d) Enforcement by State Attorneys General.--
(1) Civil action.--In any case in which the attorney
general of a State has reason to believe that an interest of
the residents of that State has been or is threatened or
adversely affected by any person who violates subsection (a),
the attorney general, as parens patriae, may bring a civil
action on behalf of the residents of the State in a district
court of the United States of appropriate jurisdiction--
(A) to enjoin further violation of such section by
the defendant;
(B) to compel compliance with such section; or
(C) to impose a civil penalty under subsection (e).
(2) Intervention by the ftc.--
(A) Notice and intervention.--The State shall
provide prior written notice of any action under
paragraph (1) to the Federal Trade Commission and
provide the Commission with a copy of its complaint,
except in any case in which such prior notice is not
feasible, in which case the State shall serve such
notice immediately upon instituting such action. The
Commission shall have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on
all matters arising therein; and
(iii) to file petitions for appeal.
(B) Limitation on state action while federal action
is pending.--If the Commission has instituted a civil
action for violation of this Act, no attorney general
of a State may bring an action under this subsection
during the pendency of that action against any
defendant named in the complaint of the Commission for
any violation of this Act alleged in the complaint.
(3) Construction with respect to powers conferred by state
law.--For purposes of bringing any civil action under paragraph
(1), nothing in this Act shall be construed to prevent an
attorney general of a State from exercising the powers
conferred on the attorney general by the laws of that State.
(e) Civil Penalty.--
(1) In general.--Notwithstanding any civil penalty that
otherwise applies to a violation of a rule referred to in
subsection (c)(1), any person who violates subsection (a) shall
be liable for a civil penalty under this subsection.
(2) Amount.--The amount of a civil penalty under this
subsection shall be an amount equal to--
(A) in the case of a wholesale sale in violation of
subsection (a), the sum of--
(i) 3 times the difference between--
(I) the total amount charged in the
wholesale sale; and
(II) the total amount that would be
charged in such a wholesale sale made
at the wholesale fair market price;
plus
(ii) an amount not to exceed $3,000,000 per
day of a continuing violation; or
(B) in the case of a retail sale in violation of
subsection (a), 3 times the difference between--
(i) the total amount charged in the sale;
and
(ii) the total amount that would be charged
in such a sale at the fair market price for
such a sale.
(3) Deposit.--Of the amount of any civil penalty imposed
under this section with respect to any sale in violation of
subsection (a) to a person that resides in a State, the portion
of such amount that is determined under subparagraph (A)(i) or
(B) (or both) of paragraph (2) shall be deposited into--
(A) any account or fund established under the laws
of the State and used for paying compensation to
consumers for violations of State consumer protection
laws; or
(B) in the case of a State for which no such
account or fund is establish by State law, into the
general fund of the State treasury.
(f) Criminal Penalty.--
(1) In general.--In addition to any other penalty that
applies, a violation of subsection (a) is punishable--
(A) in the case of a wholesale sale in violation of
subsection (a), by a fine of not more than
$150,000,000, imprisonment for not more than 2 years,
or both; or
(B) in the case of a retail sale in violation of
subsection (a), by a fine of not more than $2,000,000,
imprisonment for not more than 2 years, or both.
(2) Enforcement.--The criminal penalty provided by
paragraph (1) may be imposed only pursuant to a criminal action
brought by the Attorney General or other officer of the
Department of Justice, or any attorney specially appointed by
the Attorney General, in accordance with section 515 of title
28, United States Code.
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