San Diego Municipal Code Div. 2 Emergencies and Major Disasters; Unfair Pricing Practices

Pursuant to California Penal Code Section 396(i), municipalities are authorized to enact local legislation prohibiting excessive and unjustified increases in the prices of essential consumer goods and services when a declared state of emergency results in abnormal disruptions of the market. This Division does not apply where prohibited or preempted by state or federal law. (Added 9/19/2005 by O-19411 N.S.)

It is the intent of the City Council to ensure that citizens are protected from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency, local emergency, or state of war emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers. This ordinance shall apply when there is a proclamation of a state of emergency, local emergency, or state of war emergency declared by the President of the United States or the Governor, or executive officer or body of the City of San Diego. This ordinance shall also apply to declarations of a state of emergency, local emergency, or state of war emergency outside the jurisdiction of the City of San Diego which causes excessive and unjustified increases in the prices of goods and services vital and necessary for the health, safety, and welfare of consumers within the City of San Diego. (Added 9-19-2005 by O-19411 N.S.) (Amended 5-23-2016 by O-20645 N.S.; effective 6-22-2016.)

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San Diego Municipal Code Chapter 5: Public Safety, Morals and Welfare (6-2016)

“Consumer food item” means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.

“Repair or reconstruction services” means services performed by any person who is required to be licensed under the Contractors’ State License Law (Chapter 9 (commencing with section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of any type that is damaged as a result of a disaster.

“Emergency supplies” includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails and hammers.

“Medical supplies” includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.

“Building materials” means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.

“Gasoline” means any fuel used to power any motor vehicle or power tool.

“Transportation, freight, and storage services” means any service that is performed by any company that contracts to move, store, or transport personal or business property or rents equipment for those purposes.

“Housing” means any rental housing leased on a month-to-month or one year term.

“Goods” has the same meaning as defined in subdivision (c ) of Section 1689.5 of the Civil Code. (Added 9/19/2005 by O-19411 N.S.) (Amended 5-23-2016 by O-20645 N.S.; effective 6-22-2016.)

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San Diego Municipal Code Chapter 5: Public Safety, Morals and Welfare (6-2016)

(a) Upon the proclamation of a state of emergency, local emergency, or state of war emergency, and for a period of 30 days following that 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.

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 upon
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 sellers’ supplier or additional costs of providing the good or
service during the state of emergency, local emergency, or state of war
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, local emergency, or state of war emergency. A
business offering an item for sale at a reduced price immediately prior to the
proclamation of the state of emergency, local emergency, or state of war
emergency may use the price at which it usually sells the item to calculate the
price pursuant to this section.

(b) The provisions of this section may be extended for additional 30-day period
by the local legislative body if deemed necessary to protect the lives, property,
or welfare of the citizens.

(c) A violation of this section is a misdemeanor punishable by imprisonment in a
county jail for a period not exceeding six months, or by a fine of not more
than one thousand dollars ($1,000), or by both that fine and imprisonment.

(d) A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of section 17200 of the California Business and Professions Code. The remedies and penalties provided in this section are cumulative to each other, the remedies under section 17200 of the California Business and Professions Code, and the remedies or penalties available under all other laws of this State. (Added 9/19/2005 by O-19411 N.S.) (Amended 5-23-2016 by O-20645 N.S.; effective 6-22-2016.)

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San Diego Municipal Code Chapter 5: Public Safety, Morals and Welfare (6-2000)

Article 1: Public Emergency Procedures