Item 6,a.(1) CALIFORNIA APARTMENT ASSOCIATION Gov. Brown extends ban on price-gouging to six months October 25. 2017 Of RENT INCREASES LIMITED TO 10 PERCENT Under an executive order by Gov. Jerry Brown, protections against price-gouging in the wake of the North Bay fires — including rent increases over 10 percent — will be in effect until at least April of next year. The ban on price gouging, which originally had a 30-day time limit, is now in effect until April 18, 2018. ONLINE RESOURCES • CAA Wildfire Resource Center » • New! Industry Insight: Anti-Price Gouging Laws - States of Emergency • Attorney General’s Office:FAQs on Price Gouging The state’s anti-price gouging law went into effect earlier this month after the president and governor issued a state of emergency in California. These protections prohibit raising the price of many consumer goods and services, including that of rental housing, by more than 10 percent after an emergency has been declared. Protections under California’s anti-price-gouging law are not restricted to the city or county where the disaster occurred. The aim is to prevent price gouging anywhere in the state with an increased consumer demand resulting from the declared emergency. State or local officials can extend disaster declarations for additional 30-day periods after the initial declaration expires. Because the price-gouging law does not set clear parameters for determining where the price controls apply, rent increases exceeding 10 percent — anywhere in California — may constitute price gouging while the declaration is in effect. Members who are unsure whether the price CALIFORNIA APARTMENT ASSOCIATION controls apply to their property should seek the advice of an attorney before implementing any increase of more than 10 percent. The California Apartment Association has asked members to refrain from raising rents at all during this state of emergency. Anyone convicted of violating the statewide anti-price-gouging law can face a year in county jail, a fine of up to $10,000, or both, as well as civil penalties. Local ordinances may impose additional penalties. LOCAL GOVERNMENTS ALSO TAKE ON PRICE GOUGING : On Tuesday, the city of Santa Rosa passed an anti-price gouging ordinance which is more restrictive than the state’s own ban on the practice. This ordinance bases the 10 percent price cap on the amount charged for each particular housing unit immediately prior to the city’s Oct. 9 declaration of emergency. The ordinance also bars landlords from charging an incoming tenant rent higher than that charged immediately prior to Oct. 9 if the previous tenant of the unit was evicted, regardless of the reason for the eviction. The ordinance does make an exception to these prohibitions when the amount of an increase is directly attributable to additional costs for labor and materials. CAA recommends consulting with an attorney prior to making such a rent increase. All rental units in the city of Santa Rosa, including single-family homes and new construction, are subject to the ordinance. The Sonoma County Board of Supervisors considered a similar ordinance but tabled the matter after the district attorney expressed concerns that the ordinance might interfere with her ability to prosecute violators under state law. In Lake County, the Board of Supervisors passed an ordinance barring landlords from evicting tenants to raise rent on particular unit to a higher rate than that charged immediately before Oct. 9. This ordinance applies to all rental units in the unincorporated areas of the county. Related content: Sonoma County and Santa Rosa approve measures to improve housing availability (Santa Rosa Press Democrat, Oct. 24) Fines in effect for rent gouging (Record-Bee, Oct. 23) With 5% of its housing destroyed by fire. Santa Rosa faces wrenching questions about its future(Los Angeles Times, Oct. 24) They survived the California fires. Now, the crisis is finding housing (CNN, Oct. 21) Got housing? How you can help fire refugees in the North Bay (San Jose Mercury News, Oct. 21) hag ~ Click to staff; on Twitter (Opena in-few window)! . Click to email this to a friend (Opens in new windowl 11/13/2017 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=PEN&sectionNum=396.'&op_statues=2016&op_chapter=671... Distributed at the meeting PENAL CODE- PEN PART 1. OF CRIMES AND PUNISHMENTS [25 - 680] ( Part 1 enacted 1872. ) TITLE 10. OF CRIMES AGAINST THE PUBLIC HEALTH AND SAFETY [369a - 402c] ( Title 10 enacted 1872. ) (a) The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, or other natural or manmade disaster, some 396. merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served. (b) Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make such a declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent above the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, provided that in those situations where the increase in price is attributable to additional costs imposed by the seller’s supplier or additional costs of providing the good or service during the state of emergency or local emergency, the price represents no more than 10 percent above the total of the cost to the seller plus the markup customarily applied by the seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. (c) Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, Or other governing body vested with authority to make such a declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, provided that in those situations where the increase in price is attributable to the additional costs imposed by the contractor’s supplier or additional costs of providing the service during the state of emergency or local emergency, the price represents no more than 10 percent above the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. (d) Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make such a declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motel’s regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=PEN&sectionNum=396.&op_statues=2016&op_chapter=671&op_sec... 1/2 n/13/2Ui l mtps://leginto.legislature.ca.gov/faces/printCodeSectionWindow.xhtrnl?lawCode=PEN&sectionNum=396.&op_statues=2016&op_chapter=671..