H.R. 10105: Stop ICE Price Gouging Act

This bill would limit how much money can be added on top of the wholesale cost of items sold in commissaries at immigration detention facilities.

What items are covered

The bill defines two categories of commissary items:

• Essential items: things related to hygiene, health, dignity, and communication, such as soap, toothpaste, menstrual products, toilet paper, diapers, writing supplies, and stamps.
• Nonessential items: everything else sold in the commissary that is not considered essential.

Price limits

The bill would cap the price of commissary items as follows:

• Essential items could be marked up by no more than 5% above what the facility paid the vendor.
• Nonessential items could be marked up by no more than 35% above what the facility paid the vendor.

The bill says the relevant cost is the actual amount paid to acquire the item, after any discounts, credits, refunds, or similar reductions.

Fees and revenue sharing

The bill would prohibit extra charges on commissary sales, including service fees, commissions, or similar fees. It would also prohibit agencies or contractors running commissary services from receiving kickbacks or sharing revenue from those services.

Refunds and penalties for overcharges

If ICE determines that a detained person was overcharged beyond the allowed markup, the agency would have to arrange a refund of the extra amount. If the person has been transferred or released, ICE would have to make reasonable efforts to return the money.

If a refund cannot be made because the person is no longer at the facility, the overcharged amount would be sent to the Department of Homeland Security and deposited into a new Treasury account called the Detainee Welfare Fund. Money in that fund could only be used for electronics, recreational or educational items, and other items and programs that benefit detainees. It could not be used to meet normal detention standards or other immigration-law requirements.

Enforcement

The ICE Director would have flexibility to address violations in various ways, including:

• requiring corrective action plans,
• ordering refunds,
• withholding payments from contractors,
• ending contracts for repeated and willful violations, and
• making contractors ineligible for future contracts.

The Department of Homeland Security Inspector General would have to audit compliance, investigate alleged violations, and refer credible allegations to ICE.

Reporting requirements

Starting 90 days after enactment and every 90 days after that, ICE would have to report to congressional committees on:

• the cost of acquiring essential items and the markup charged,
• the average markup on nonessential items,
• violations involving essential and nonessential items, and
• certifications of compliance for detention facilities.

State law

The bill would not override state laws that impose even lower markup limits on commissary items at immigration detention facilities.

Other clarification

The bill says it does not authorize charging detainees for items that federal or state law, detention standards, or contracts already require to be provided free of charge.

Relevant Companies

None found