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Drought-Related Overpricing Prevention Act: Protecting Water Rights

This act aims to protect citizens from unfair price increases for water rights during droughts. The Federal Trade Commission (FTC) will establish rules to prevent entities from selling or leasing water rights at excessive prices by using drought as an excuse. This ensures that access to water remains fair and affordable during challenging conditions.
Key points
Prohibition on water rights price gouging: Companies will be prevented from selling or leasing water rights at excessively high prices if a drought is used as a pretext for the increase.
Exemptions for small businesses and governments: The rules will not apply to entities with less than $100 million in annual revenue, nor to state, local, or tribal governments.
Defining excessive price: A price will be considered excessive if it's significantly higher than the average price from the 120 days before the drought and the drought is used as a pretext for the increase.
Enforcement by FTC: The Federal Trade Commission will enforce these regulations, and violations will be treated as unfair trade practices.
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Expired
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Additional Information
Print number: 118_HR_3637
Sponsor: Rep. Gallego, Ruben [D-AZ-3]
Process start date: 2023-05-24
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

DROP Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3637.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-24.

What are the main provisions?

Key points include:

  • Prohibition on water rights price gouging: Companies will be prevented from selling or leasing water rights at excessively high prices if a drought is used as a pretext for the increase.
  • Exemptions for small businesses and governments: The rules will not apply to entities with less than $100 million in annual revenue, nor to state, local, or tribal governments.
  • Defining excessive price: A price will be considered excessive if it's significantly higher than the average price from the 120 days before the drought and the drought is used as a pretext for the increase.
  • Enforcement by FTC: The Federal Trade Commission will enforce these regulations, and violations will be treated as unfair trade practices.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Gallego, Ruben [D-AZ-3].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Innovation, Data, and Commerce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Environment Economy Courts and Law