Wednesday, 17 January 2007
Legislators don't want towns imposing price controls Print E-mail
PAUL FOY - The Associated Press   

SALT LAKE CITY -- Legislation that would give mayors and county executives the power to declare a disaster and control prices on goods and services was taken out of play Tuesday at the Utah Capitol.

Hearing opposition from businesses, a House committee was skeptical of extending a power usually reserved for the governor.

Rep. Lou Shurtleff, D-Ogden, withdrew her bill before the Republican-controlled House Political Subdivisions Committee could reject it.

Shurtleff said she'll try to return with a different bill. It wasn't clear if that would overcome objections from the panel's members, who said they don't want mayors declaring a disaster over something as simple as a water-main break and tying the hands of businesses.

Other objections came Tuesday from the Utah Petroleum Association, another group that represents retailers and food merchants, and the head of Utah's Commerce Department, Thad Levar, who said his agency doesn't have enough people to run around enforcing local price controls.

Utah businesses don't normally rush to gouge consumers because it doesn't look good, said Jim Olsen, president of the Utah Retail Merchants Association.

"If we have one or two unscrupulous businesses gouging everybody, it gives all of us a black eye," he said.

Utah already has a price-control law that limits the price of goods in a natural disaster to 10 percent over cost plus a "customary" markup. It takes effect for 30 days after a governor or president declares part of Utah a natural disaster.

A spectacular disaster occurred in February 2005 when heavy rain unleashed a flood on the Santa Clara River in Washington County and swept away or heavily damaged about 30 houses. The law was meant to control the price of everything from food essentials to building materials when they come into heavy demand after a disaster. But only a formal declaration by the governor or president can put the state price controls into effect.

It makes an exception for goods or services that can be hard to come by during a disaster, as long as they aren't priced 30 percent higher than cost.

In other action Tuesday, the House Political Subdivisions Committee endorsed a resolution embracing Gov. Jon Huntsman's goal of cutting state government energy use by 20 percent by 2015.

State agencies spend $60 million annually on energy, said Rep. Ralph Becker, D-Salt Lake City.

This story appeared in The Daily Herald on page D4.
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