Eastvale Municipal Code Ch. 8.40 Price Increases for Food and Consumer Services

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State Law reference— Municipal power to adopt ordinance prohibiting excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, Penal Code § 396.

The definitions set forth in Penal Code § 396(h) (Emergencies and major disasters; unfair advantage of consumers; price controls; penalties; definitions; preemption; calculations), shall be effective as definitions of the words, terms and phrases used in this chapter. All words, terms and phrases used herein, other than those specifically defined elsewhere in this chapter, shall have the respective meanings ascribed to them in Penal Code § 396(h), and shall have the same scope and effect that the same words, terms and phrases have where used in Penal Code § 396(h).

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) Goods. Upon the earlier of either the issuance of a proclamation or declaration of emergency involving or threatening the lives, property or welfare of the residents of the city pursuant to this Code and/or Government Code § 8630 et seq., or for which a disaster or emergency is declared by the President of the United States or the governor of the state and for a period of 30 days from the date such state of emergency is terminated, it is unlawful for any person, contractor, company, business or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency or medical supplies, home heating oil, building materials, housing, transportation, freight and storage services, or gasoline, or other motor fuels for an amount which exceeds by ten percent the price charged by such person, contractor, company, business, or other entity for the goods on the day prior to the emergency period as stated in the proclamation or declaration of emergency, unless the person, contractor, company, business, or other entity, can establish by clear and convincing evidence that a greater increase in price was directly attributable to additional costs imposed on it by the supplier of the goods or for labor or materials actually used to provide or make the product, 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, the price represents no more than ten 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.

(b) Services. Upon the earlier of either the issuance of a proclamation or declaration of emergency involving or threatening the lives, property or welfare of the residents of the city pursuant to this Code and/or Government Code § 8630 et seq. or for which a disaster or emergency is declared by the President of the United States or the governor of the state and for a period of 180 days from the date such state of emergency is terminated, it is unlawful for any person, contractor, company, business or other entity to furnish or offer to furnish any repair, reconstruction or construction services, or any services used in emergency cleanup for an amount which exceeds by ten percent the price charged by such person, contractor, company, business or other entity for such services on the day prior to the emergency period as stated in the proclamation or declaration of emergency, unless the person, contractor, company, business, or other entity can establish by clear and convincing evidence that a greater increase in price is directly attributable to additional costs imposed on it by the supplier of the goods or for labor or materials actually used to provide the service, 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, the price represents no more than ten 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.

(c) When price increase prohibited. Upon the proclamation of a state of emergency resulting from an earthquake, flood, fire, riot, storm or other natural disaster declared by the President of the United States or the governor, or upon the declaration of a local emergency resulting from an earthquake, flood, fire, riot, storm or other natural disaster by the executive officer of 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 ten percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

If there is reasonable cause to believe that a person has violated the provisions of this section, the city director of purchasing or his designee shall, prior to authorizing the filing of a criminal complaint, conduct a review hearing upon due notice and an opportunity to be heard to the party accused. At the conclusion of such review hearing, the director or designee may, in his discretion, recommend that a criminal complaint be filed. The director or designee may for good cause, dispense with the requirement of conducting a hearing prior to recommending that a criminal complaint be filed.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

The finance director shall preside over the review hearing. The decision of the finance director shall be final. The finance director shall also have the authority to negotiate a settlement based on all the facts presented. Upon the finance director's final decision, all documentation will be forwarded to the deputy director of purchasing for transmission to the district attorney or for other appropriate disposition

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

A violation of this chapter is declared to be a misdemeanor and shall be punishable by a fine not to exceed $1,000.00 or by imprisonment for not more than six months or both.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)