While the pricing of consumer goods and services is generally best left to the market under ordinary conditions, when a declared state of emergency results in market failure and predatory pricing, the public interest requires regulation to prohibit excessive and unjustified increases in the prices of essential consumer goods and services. It is the intent of the City Council to protect the residents of Artesia from such price gouging in the market for rental housing and other goods and services vital to the public health, safety, and welfare.
(Ord. 20-895U, § 2)
(a) 
Sales of Goods and Services. During a period of declared emergency, 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% greater than the price charged by that person for those goods or services immediately prior to the 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, during the state of emergency, and the price is no more than 10% greater than 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) 
Repair and Reconstruction Services. During a period of declared emergency, 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% above the price charged by that person for those services immediately prior to the 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, during the state of emergency, and the price represents no more than 10% greater than 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 emergency. Nothing in this chapter shall limit, shorten, or otherwise affect the provisions of Penal Code Section 396 applicable to repair or reconstruction services.
(c) 
Transient Housing. During a period of declared emergency, it is unlawful for any person, business, or other entity to rent or lease a hotel room, motel room, other short-term rental unit, or lodging subject to transient occupancy taxes under Article 3, Chapter 5 of Title 3 of this Code, for more than 10% above the rental's regular rates, as advertised immediately prior to the declaration of emergency, unless that person, business or other entity can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in the business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(d) 
Rental Housing. During a period of declared emergency, it is unlawful for any person, business, or other entity, to increase the rental price, as defined Section 5.22.040, advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10%. However, a greater rental price increase is not unlawful if that person can prove that the increase is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than 10% or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services (except as provided in Section 5.22.040 for furnished units), or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subsection does not authorize a landlord to charge a price greater than any amount authorized under Civil Code Section 1947.12.
(e) 
Food Delivery Services. During a period of declared emergency, it is unlawful for any person, business, or entity to sell or offer to sell third-party food delivery services for a fee of more than 15% of the purchase price per online order.
(Ord. 20-895U, § 2; Ord. 20-897U, § 2)
During a period of declared emergency, it is unlawful for any person to evict any residential tenant of residential housing or terminate an existing lease or month-to-month rental agreement and subsequently rent or lease the same dwelling unit, including a vacation rental unit, in the city at a rental price greater than the evicted tenant could be charged under this chapter. It shall not be a violation of this section for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the declaration of emergency.
(Ord. 20-895U, § 2)
For purposes of this chapter, unless a word's context clearly requires otherwise, the following definitions apply:
"Building materials"
means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
"Consumer food item"
means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
"Declared emergency"
means a declaration of a local emergency by City officials pursuant to Government Code Section 8630.
"Emergency supplies"
means those general items necessary or convenient to residing or working in the City for example includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
"Gasoline"
means any fuel or energy source used to power any motor vehicle or power tool.
"Goods"
has the same meaning as defined in subdivision (c) of Civil Code Section 1689.5.
"Housing"
means any rental housing, including, but not limited to, a space rented in a mobile home park or campground.
"Medical supplies"
includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
"Online order"
means an order for a consumer food item placed through a platform provided by a third-party food delivery service for delivery or pickup within the City.
"Purchase price"
means the menu price of an online order, excluding taxes, gratuities, and any other fees which may contribute to the total cost to the customer of an online order.
"Rental price"
for housing means any of the following:
(1) 
For housing rented within one year prior to the declaration of emergency, including housing rented at the time of the declaration which becomes vacant while the declaration of emergency remains in effect, the actual rental price paid by the tenant. For housing not rented at the time of the declaration, but rented, or offered for rent, within one year prior to the declaration, the most recent rental price offered before the declaration of emergency. This amount may be increased by 5% if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(2) 
For housing not rented and not offered for rent within one year prior to the declaration of emergency, 160% of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5% if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(3) 
Housing advertised, offered, or charged, at a daily rate at the time of the declaration of emergency, shall be subject to the rental price described in paragraph (1), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration of emergency, shall be subject to the rental price in paragraph (2), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration.
"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 a disaster.
"State of emergency"
means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, or other natural or manmade disaster for which a local emergency has been declared by the City Council or City official vested authorized to make such declaration.
"Third-party food delivery service"
means any website, mobile application or other internet service that offers or arranges for the sale of consumer food items for same-day delivery or same-day pickup from a restaurant or similar food facility located within the City.
"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 that rents equipment for those purposes, including towing services.
(Ord. 20-895U, § 2; Ord. 20-897U, § 3)
In addition to any criminal, civil, or other legal remedy established by law available to address violations of the municipal code, violations of the provisions of this chapter are subject to the administrative penalty provisions of Chapter 7 of Title 1 of this Code.
(Ord. 20-895U, § 2)