[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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