RETAIL PRICE MONITORING ACT OF 1992

Transcription

1 Retai Price Monitoring Act of MIRC Ch.11 TITLE 10 PLANNING AND ECONOMIC DEVELOPMENT CHAPTER 11 - RETAIL PRICE MONITORING s Repubic of the Marsha Isands Jepipiin Ke Ejukaan RETAIL PRICE MONITORING ACT OF 1992 Arrangement of Sections Section Page PART I - PRELIMINARY; INTENT Short Tite Legisative Intent PART II- DEFINITIONS - BOARD Definitions The Retai Price Monitoring Board Authority for Reguations PART III - PRICE MONITORING Baseine Retai Prices Loca Monitoring Other Price and Cost Information Imposition of Price Contros Modification and Termination of Price Contros Aowabe Markups Notices and Records PART IV -ENFORCEMENT AND PENALTIES Enforcement Penaties Price Lists; Fasifying Records Page 1

2 10 MIRC Ch.11 Retai Price Monitoring Act of 1992 PART V - PUBLIC EDUCATION Consumer Awareness Recommendations to the Cabinet PART VI- MISCELLANEOUS Board Staff Severabiity Page 2 r

3 Retai Price Monitoring Act of MIRC Ch TITLE 10 PLANNING AND ECONOMIC DEVELOPMENT CHAPTER 11 - RETAIL PRICE MONITORING s Repubic of the Marsha Isands Jepipiin Ke Ejukaan RETAIL PRICE MONITORING ACT OF 1992 AN ACT to provide for the monitoring of retai prices charged aboard vesses and within the outer isands; to gather information on retai pricing; to encourage consumer education; and to repea the Price Contro Act Commencement: Apri 9, 1992 Source: P.L PART I - PRELIMINARY; INTENT Short Tite. This Chapter may be cited as the Retai Price Monitoring Act of [P.L , 1.] Legisative Intent. The Nitijea hereby makes the foowing findings: (1) that in many paces within the Repubic retaiers may be seing or bartering commodities at prices which are in excess of any fair profit margin; (2) that residents of the Repubic shoud not be burdened by prices exceeding those which provide retaiers a fair and reasonabe profit; (3) that the instance of excessive prices is made worse by monopoy and near monopoy practices which prevai in most ocaities; (4) that the increase in copra prices may aggravate this situation; Page 3

4 10 MIRC Ch Retai Price Monitoring Act of 1992 (5) that this situation is so grave and widespread that it presents a threat to the wefare of the residents of the Repubic; (6) that an infexibe rue regarding retai pricing may have the adverse effect of discouraging the importation of essentia goods, therefore, the Nitijea wi provide for ato by ato review and intends to aow for extraordinary instances; (7) that greater pubic awareness of pricing eves wi have the overa effect of encouraging more competitive pricing at the retai eve; and (8) that this Chapter shoud be impemented to effectuate these findings. [P.L , 2.] PART II- DEFINITIONS - BOARD Definitions. As used in this Chapter, the foowing terms sha have the meanings given to them, uness the context otherwise requires: (1) Board means the Marsha Isands Retai Price Monitoring Board; (2) baseine price means the average retai price charged in Majuro or Ebeye determined in accordance with reguations promugated pursuant to Section 1105, at a minimum it shoud refect an average of retai prices over a four week period: (3) commodity means any goods, wares, merchandise, or foodstuff; (4) cost means the purchase price paid by a retaier for any commodity as refected on the invoice for the commodity or the repacement cost, whichever is ess, pus insurance costs, termina fees, and import taxes directy attributabe to such commodity (if not refected in the invoice); (5) cost of doing business or overhead expense means a current costs of doing business incurred in the conduct of a business at a given ocation and incudes the foowing items of expense: Labor costs, rent, depreciation, seing costs, maintenance of equipment, deivery costs, a types of icenses, insurance, and advertising, and other fixed and incidenta expenses as may be defined by reguation; the term sha not incude taxes imposed on gross revenue, and saes taxes which are required by aw to be separatey stated; Page 4 r

5 Retai Price Monitoring Act of MIRC Ch (6) essentia commodity means commodities such as foodstuffs, fue, and other items that are essentia and required to provide for the basic needs of ife as may be prescribed by the Board; (7) person means natura persons, corporations, partnerships, associations, and other combinations acting as a unit; (8) retaier means any person, partnership, firm, corporation, or association, seing any commodities to the consumer thereof; (9) retai store means a ocation at which essentia commodities are reguary offered for sae at retai to utimate consumers; (10) sae means the transfer of tite or possession of an essentia commodity to a person whether for a monetary consideration or by means of barter. Sae does not incude a casua sae by a person not reguary engaged in the trade or business of offering commodities for sae. [P.L , 3.] The Retai Price Monitoring Board. (1) The Marsha Isands Price Monitoring Board ( the Board ) is hereby estabished. (2) The Board sha be composed of five (5) members as foows: (a) (b) the Secretary of Interna Affairs, who sha chair the Board; four members who are citizens residing in the Repubic. The four citizen members sha be appointed by the Cabinet and serve terms of four years, and no more than two terms atogether. Two of the citizens appointed sha be from among the business community in the Repubic. (3) A appointments made pursuant to Subsection (2)(b) are subject to the approva of the Nitijea, or of a committee thereof designated by the Nitijea to review appointments, or, if no committee has been so designated, such appointments sha be made after consutation with the Speaker of the Nitijea and sha be subject to confirmation by the Nitijea at its next succeeding session. (4) Appointed members may receive compensation in accordance with aw from funds which have been appropriated by the Nitijea for the purpose. Page 5

6 10 MIRC Ch Retai Price Monitoring Act of 1992 (5) Meetings may be caed by either the Chairman or the Cabinet, provided that the Board sha meet not ess frequenty than once in every caendar quarter. (6) Three (3) members of the Board sha constitute a quorum. [P.L , 4.] Authority for Reguations. In accordance with the Marsha Isands Administrative Procedure Act, the Board, with the approva of the Cabinet, sha promugate reguations to enforce and impement this Chapter. [P.L , 5.] PART III - PRICE MONITORING Baseine Retai Prices. (1) The Board sha, as soon as possibe after the initia appointments are made, perform a survey of retai prices in the Majuro and Ebeye communities. The Board sha determine by reguation those commodities or categories of commodities that wi be surveyed. Commodities deemed essentia by reguation sha be surveyed. (2) The Board sha make the price surveys and information gathered avaiabe to the pubic. (3) The survey information sha be used to determine the baseine price months. (4) The baseine price sha be updated every six months. (5) In setting the baseine price, the Board sha take into account the avaiabiity of the item at whoesae and the whoesae costs or prices, as we as any oca taxes that may be imposed. If deemed necessary by the Board, a whoesae baseine price may be appied to any particuar retaier. [P.L , 6.] Loca Monitoring. (1) The Board sha, as soon as possibe after the initia appointments are made, prepare through reguations a isting of essentia commodities or categories of essentia commodities. Page 6 r

7 Retai Price Monitoring Act of MIRC Ch (2) The ist prepared pursuant to Subsection (1) of this Section sha be transmitted to each oca government and, at the discretion of the Board, to such other persons who wi assist in gathering and reporting retai price information. (3) Each oca government or reporter of information must indicate the foowing for each item on the ist: (a) (b) (c) the name and address of each retaier and retai ocation offering the item for sae; the current price being charged by each retaier; and any other information reating to pricing and avaiabiity. (4) The information compied by the oca governments and other reporters sha be transmitted to the Board. (5) The information sha be updated every six months. (6) Summaries of the information sha be made avaiabe to the pubic. [P.L , 7.] Other Price and Cost Information. (1) The Board sha gather such further information as may from time to time needed in order to assure that their decisions are based on the most compete and accurate information avaiabe. (2) The Board sha gather information on the cost of transportation and shipping commodities to the various atos and isands of the Repubic. [P.L , 8.] Imposition of Price Contros. (1) Whenever the Board determines, based upon information from the oca governments, information on the cost of transportation and shipping, and any other information the Board may receive, that prices charged by a retaier for any essentia commodities on any ato or isand or upon fied trip and commercia vesses in the Repubic are in excess of 25% over the tota of the baseine price pus the reevant transportation and shipping costs as determined by the Board, the Board sha: (a) decare price contros in effect with respect to such essentia commodities in the atos and isands or vesses affected; Page 7

8 10 MIRC Ch Retai Price Monitoring Act of 1992 (b) (c) (d) issue a decaration imposing price contros which sha state: (i) (ii) (iii) (iv) the reasons for the imposition: the terms of the price restrictions imposed; the information upon which the restrictions are based, the formua to be used in determining the maximum awfu price of affected essentia commodities or both; and the areas and essentia commodities affected. a copy of the decaration sha be fied with the Chief Secretary, the oca government of a isands or atos affected, and, as appicabe, on the captain of the vesse, and sha be pubicized in a way that wi best bring the decaration to the attention of the residents of those isands or atos or other reevant popuation. (2) In any decaration, or by reguation, the Board may make aowances for breakage, spiage, theft, and hardship cases as the Board deems equitabe. (3) Whenever the Board determines, based upon information from the oca governments, information on the cost of transportation and shipping, and any other information the Board may receive, that prices charged by a retaier for any essentia commodities on any ato or isand or upon fied trip and commercia vesses in the Repubic are in excess of 25% over the actua cost paid for the essentia commodity pus the reevant transportation and shipping costs as determined by the Board, the Board sha impement the price contro provisions of Section (4) Commencing the fourth day after the date upon which the decaration is fied with the Chief Secretary it sha be unawfu for any person to se or offer to se in the ocaity or upon the vesses specified in a decaration, an essentia commodity at a price greater that the maximum awfu price specified in the decaration or as determined with reference to a decaration, except as may be specified by the Board in accordance with this Chapter. [P.L , 59.] Page 8 r

9 Retai Price Monitoring Act of MIRC Ch Modification and Termination of Price Contros. (1) Any price contros imposed in accordance with the terms of Section 1109 of this Chapter may be modified or terminated at any time by decaration of the Board or by resoution of the Nitijea, provided that no modification sha be made by resoution of the Nitijea which sha have the effect of reducing the maximum awfu price imposed by the Board on any essentia commodity or increasing the areas or essentia commodities affected by the Board s decaration. (2) Any decaration or resoution modifying or terminating a price contro decaration sha be disseminated and pubicized in the same manner as the origina decaration. [P.L , 10.] Aowabe Markups. (1) Any other provision of this Chapter and any provision of any decaration of the Board or resoution of the Nitijea to the contrary notwithstanding, if at any given time an essentia commodity is sod or offered for sae at a price that does not exceed 25% over the tota of the baseine price pus the cost of transportation and shipping as determined by the Board for that essentia commodity, such sae sha not constitute a vioation of this Chapter or of any decaration issued under the authority of this Chapter. This provision sha not appy when the Board determines that the whoesae price represents the reevant baseine. (2) Any person intending to se or offer to se, at a price which exceeds one hundred twenty-five percent (125%) of the baseine price pus shipping and transportation, an essentia commodity that is subject to a decaration must furnish to the Board at east the foowing information: (a) (b) (c) (d) the specific reason that the price wi exceed the aowed mark up; copies of any and a invoices or other documentation showing the cost; evidence of their costs of doing business at the ocation in question; and any other reevant information. Page 9

10 10 MIRC Ch Retai Price Monitoring Act of 1992 (3) The Board sha prompty review a submissions of information made under Subsection (2) of this Section. The Board sha, within 5 (five) days of the date the information is received do one of the foowing: (a) (b) (c) Notices and Records. issue an exemption to the decaration specific to the essentia commodity, the seer, and any other information deemed necessary; issue a maximum awfu price or formua specific to the essentia commodity; request further information from the person making the request or any other source; or, (d) deny the submission and transmit notice of the denia to the person making the request. [P.L , 11.] (1) Each retai store ocated within an area affected by a price contro decaration sha within ten (10) days after the issuance of such decaration post a conspicuous notice which is convenienty visibe to its customers which sha ist a essentia commodities offered for sae by it and subject to price contros. The notice must state with respect to each such essentia commodity the maximum price which may be charged in accordance with such decaration. (2) Each such retai store sha aso post a notice at its main entrance, or service window if there is no entrance, which sha ceary inform its customers that price contros are in effect with respect to certain essentia commodities referred to in the preceding sentence of this Section. (3) Both notices required by this section sha be posted continuousy and conspicuousy, and sha be corrected as necessary unti price contros are terminated with respect to the area in which such retai store is ocated or with respect to a essentia commodities sod or offered for sae by such retai store. (4) Upon reasonabe notice, to be not ess than two business days, the books of account and records of each person offering essentia commodities for sae within the Repubic sha be made avaiabe for inspection by members of the Board or its agents for the purpose of Page 10 r

11 Retai Price Monitoring Act of MIRC Ch determining what price margins are in effect with respect to essentia commodities. (5) During periods and in areas where a price contro decaration is in effect the books of account and records of each person offering essentia commodities sha be made avaiabe upon request of the Board or its agents for the purpose of monitoring compiance with any price contro decaration. [P.L , 12.] PART IV -ENFORCEMENT AND PENALTIES Enforcement. (1) The Board sha have a necessary investigative powers incuding the power to compe the attendance of witnesses and the production of evidence of every description. The Board may, as deemed appropriate in any given circumstance, deegate the necessary investigative authority to a oca government or any other person. (2) If the Board finds that any person is seing or offering for sae any essentia commodity in vioation of the provisions of this Chapter or of any decaration or reguations issued pursuant hereto, the Board sha transmit a written notice of non-compiance to the person. (3) Such notice sha state the specific nature of the vioation. (4) Any person who receives a notice of noncompiance sha have ten (10) days from the date he receives such notice to satisfy the Board that he is then in compiance with this Chapter and the appicabe decarations and reguations of the Board or that he was not initiay in vioation. (5) If the Board is not so satisfied at the end of such ten (10) day period it sha report the vioation to the Attorney-Genera for prosecution in accordance with this Chapter. (6) After two notices of noncompiance have been sent to any one person and the Board has determined that the person was initiay in vioation of this Chapter or the decarations or reguations of the Board in both instances, any subsequent vioation by the person within one hundred and eighty (180) days after the initia vioation sha be reported directy to the Attorney-Genera for prosecution in accordance with this Chapter. [P.L , 13.] Page 11

12 10 MIRC Ch Retai Price Monitoring Act of Penaties. Any person who vioates any provision of this Chapter or any decaration or reguation issued hereunder sha be guity of a misdemeanor and sha upon conviction be iabe to a fine not exceeding $5,000 or, if a natura person, to a term of imprisonment not exceeding one year, or both. Each sae or offer for sae of an essentia commodity in vioation of this Chapter or of the decarations and reguations of the Board sha constitute a separate vioation thereof and sha be punished as such. In making a determination on sentencing the Court sha take into account the overa circumstances of the person found guity of a vioation. The Court may, when appropriate, provide for a term of imprisonment for the person within a corporation, partnership. or other organization, that was responsibe for the vioation. [P.L , 14.] Price Lists; Fasifying Records. (1) It sha be unawfu for a person to substitute a ist of prices furnished by a retaier with a ist indicating higher prices. Any person substituting ists in vioation of this Section sha be fined at east $5,000, or sentenced to one year imprisonment, or both. (2) Any person who fasifies or creates records which have the effect of miseading the Board or conveying fase information to the Board about any item, sha be found guity of a misdemeanor and fined at east $5,000, sentenced to one year imprisonment, or both. [P.L , 15.] PART V - PUBLIC EDUCATION Consumer Awareness. The Board sha undertake measures to encourage consumers to responsiby exercise their economic choices. [P.L , 16.] Recommendations to the Cabinet. The Board sha make recommendations to the Cabinet on any further measures that may be necessary or hepfu in achieving the goas of this egisation. [P.L , 17.] Page 12 r

13 Retai Price Monitoring Act of MIRC Ch PART VI- MISCELLANEOUS Board Staff. The Cabinet may, in consutation with the Pubic Service Commission, designate appropriatey skied officers of the pubic service as staff to the Board. If there are no appropriatey quaified officers avaiabe within the pubic service, the Board may, in consutation with the Cabinet, seek other appropriatey quaified staff or consutants. [P.L , 18.] Severabiity. In the event that any of the provisions of this Chapter are found to be invaid, or if the appication of any provision of this Chapter to any person or circumstance is found to be invaid, such invaidity sha not affect any other provision or appication which can be given effect without the invaid provision or appication. [P.L , 19.] Page 13