The proposed bill, known as the "hotel and lodging pricing protection act," aims to prohibit excessive pricing for lodgings during a declared state of emergency in Michigan. It defines "excessively increased price" as a price that exceeds the average price charged in the 30 days prior to the emergency declaration by more than 20%, unless the price increase can be justified by specific circumstances such as increased costs or pre-existing contracts. The bill outlines the types of lodgings covered, including hotels, bed and breakfasts, and short-term rentals, and establishes that these provisions apply during or within 30 days after a state of emergency.
To enforce this act, the attorney general or local prosecuting attorneys are granted the authority to investigate violations, issue demands for testimony and documents, and bring class action lawsuits on behalf of affected individuals. Penalties for violations include civil fines of up to $10,000 for individuals and $500,000 for entities, as well as potential misdemeanor charges for intentional violations. The act also allows for cumulative remedies and does not limit the attorney general's powers under existing consumer protection laws. The bill will only take effect if certain related legislation is also enacted.