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HomeMy WebLinkAboutAGENDA REPORT 1994 0202 CC REG ITEM 11J 1-TAN 28 '94 1434 DR OFFICE /� J ''PCMP.2 ti' � , �� ;'°�', OFFICE OF THE DISTRICT ATTORNEY County of Ventura, State of California COLLEEN Toy WHITE Chief Assist.nt District Attorney MICHAp. D. BRADBURY KEVIN J.MCCGEE D strict Attorney Chief Deputy District Attorney January 28, 1994 RK, CALIFO—, -- 7 Coouu.-dl Naclinj 99 Ms. Cheryl K. Kane City Attorney for Moorpark % ( y� 611 West Sixth St, Suite 2500 sy u-- Los Angeles, CA 90017 Re: Price Gouging Ordinance Dear Ms. Kane: Last week I wrote to the Ventura County Board of Supervisors to recommend that the Board direct the County Counsel to draft a proposed county ordinance prohibiting price gouging of emergency supplies, food, water and other consumer goods necessary for the health and safety of Ventura County citizens and that the Board adopt the ordinance. I sent a copy of my letter to the Board to your city manager's office as well. I recommended this action after the Consumer and Environmental Protection Division of my office had received numerous complaints from local citizens complaining of huge price hikes for necessary items, such as water, milk, bread, gasoline, lumber and plumbing supplies following the January 17th Northridge earthquake which brought devastation upon several areas of Ventura County. Because of the lack of any statewide provisions outlawing these practices, there was little or nothing that local law enforcement officials could do to stop the practice of price gouging. There also were no county or city ordinances prohibiting this conduct on a local level. County Counsel James McBride drafted a county ordinance modeled on an existing ordinance that was in effect in the City of Los Angeles and I am pleased that the Board of Supervisors adopted this ordinance on January 25, 1994 to take effect immediately in the unincorporated portions of Ventura County. A copy of that ordinance is enclosed. • I am writing to urge you to ask your City Council to adopt a similar ordinance so that law enforcement agencies in your city would have the ability to seek a criminal Hall of Justice, 800 South Victoria Avenue,Ventura,CA 93009 (805)654-2.500 Telecopier(805) 654-3850 JRN 28 '94 14:32 805 654 3850 PRGE.002 JAN 28 '94 14:35 DA OFFICE P.3 Ms. Cheryl K. Kane City Attorney for Moorpark January 28, 1994 Page 4 or civil sanction against those few individuals who would try to reap a financial windfall from the misery of citizens in your city who are dealing with a disaster. My office worked with County Counsel McBride in reviewing laws prohibiting price gouging that were previously enacted in Connecticut, Hawaii and New York. My staff would be pleased to offer you any assistance as you consider drafting an ordinance for your city. Finally, I recommend that you support state legislation designed to outlaw price gouging throughout California. As public officials, it is incumbent that we take all necessary steps to protect Ventura County citizens from excessive and unjustified increases in prices charged for goods and services vital to their health and welfare. If each city in Ventura County adopts a price gouging statute similar to the one adopted by the Board of Supervisors, we will be able to provide direct assistance to the vast majority of Ventura County business men and women whose goal is to help their neighbors rather than profit from them. Very truly yours, A MICHAEL D. BRADBURY District Attorney MDB:GWB:st Enclosure JAN 28 '94 14:33 805 654 3850 PAGE.003 JAN 28 '94 14:35 DR OFFICE P.4 ORDINANCE NO. AN ORDINANCE ADDING CHAPTER 4 TO DIVISION 5 OF THE VENTURA COUNTYORDINANCE CODE TO PROVIDE FOR THE REGULATION OF THE PRICE OF EMERGENCY ITEMS AND SERVICES WHEN THERE HAS BEEN A 'PROCLAMATION OF A LOCAL EMERGENCY PURSUANT TO GOVERNMENT CODE SECTION 8630 OR VENTURA COUNTY ORDINANCE CODE SECTION 5323-1.1 The Board of Supervisors of the County of Ventura ordains as follows: Section 1. Findings - Following the Northridge Earthquake on January 17, 1994, which was proclaimed as a local emergency, there have been reports of excessive price increases for emergency items or services necessary for health, safety and welfare, in relation to their price that existed before the local emergency, even accounting for price increases incurred by the provider of the emergency items or services. Section 2. CHAPTER 4 - PRICES OF EMERGENCY ITEMS AND SERVICES is hereby added to Division 5 of the Ventura County Ordinance Code to read as follows: "CHAPTER 4 - PRICES OF EMERGENCY ITEMS AND SERVICES "Sec. 5411 - REGULATION OF PRICES - This section applies to the regulation of prices of emergency items and services during an emergency or disaster for which a proclamation of a local emergency has been issued for the County of Ventura, by the Board of Supervisors or the Sheriff, as the Director of Disaster services, pursuant to Government Code section 8630 or Ventura County Ordinance Code section 5323-1.1. (a) Bindings. As a result of local emergencies, con- sumers have sought to purchase emergency items and services necessary for their health, safety and welfare. In such local emergencies, there have been reports of excessive price increases for emergency items or services, in relation to their price that existed before the local emergency, even accounting for price increases incurred by the provider of the emergency items or services. (b) Legislative Intent. It is the intention of the Board of Supervisors, in adopting this section, to protect consumers from excessive and unjustified increases in the prices of emergency items and services necessary for their health, safety and welfare during an emergency or disaster for which a proclamation of a local emergency has been issued. .T41N PA ,q4 14:734 ARS cc4 7Pcn PO= MA JAN 28 '94 14:36 DR OFFICE P.5 • (c) excessive Price Increases Prohibited. Upon the • proclamation of a local emergency, it shall be unlawful for any person, including a natural person, a contractor, a business or other entity, to sell or offer to sell any emergency items or services for a price which exceeds ten percent of the price charged by such person for said emer- gency items or services immediately prior to the proclama- tion of the local emergency, unless said person can prove that the excess was directly attributable to additional costs imposed by the supplier of the emergency items or resulting from the labor and/or materials used to provide the emergency service. 1. The applicability of this subsection (c) can be expressly reduced or eliminated by provisions within the proclamation of the local emergency. 2. The applicability of this subsection (c) terminates upon the termination of the local emergency, unless terminated earlier by the Board of supervisors. (d) perinitions. For purposes of this section, the following definitions shall apply: • 1. Emergency items include, but are not limited to: food, drink, confection or condiment for man or animal; water, flashlights, radios, batteries, candles, blankets, soaps, and diapers; and prescription and non- • prescription drugs, bandages, gauzes, and isopropyl alcohol. 2. Emergency services include, but are not limited to: contractor services for repairs to residential and commercial property of any type which are damaged. Incorporated herein are the definitions contained in sections 7025, 7026, 7026.1 and 7026.3 of the California Business and Professions Code. • (e) Hearing. If there is reasonable cause to believe that a person has violated the provisions of this section, the District Attorney shall, prior to the filing of a criminal complaint, conduct a hearing upon due notice and an opportunity to be heard. At the conclusion of such hearing, the District Attorney may, in his discretion, file a criminal complaint. The District Attorney may, for good cause, disperse with the requirement of conducting a hearing prior to the filing of a criminal complaint. (f) penalty. 1. Any person who shall be convicted of violating the provisions of this section shall be guilty of a 2 JAN 28 '94 14:34 805 654 3650 PRGE.005 • JAN 28 '94 14:37 DR OFFICE P.6 misdemeanor and upon conviction thereof shall be punished by a fine of not less than $1, 000 or by imprisonment in the County Jail for not more than six months, or by both such fine and imprisonment. Any person believing that a violation of said ordinance has been committed may file a complaint with the District Attorney. 2. The District Attorney or anyone affected may prosecute a civil action under applicable state law to enforce this section and in any action a civil penalty may be imposed an provided by law and, where appro- priate, restitution to aggrieved consumers may be ordered. Section 3. Effective Date - This ordinance is enacted as an urgency measure, for the reasons set forth in Section 1 above, and shall become effective immediately upon adoption by four-- fifths (4/Sths) vote of the Board. PASSED AND ADOPTED this day of , 1994, by the following vote: AYES: Supervisors NOES: ABSENT: CHAIR, BOARD OF SUPERVISORS 1 ATTEST: RICHARD D. DEAN, County Clerk, County of Ventura, State of California, and ex officio Clerk of the Board of Super- visors thereof. By Deputy Clerk c AtexAwewy l prep t fa.ord 3 TAN 'A4 14:7S AAS Fid 7fc2 PO= nn AN 21 '94 15 43 DR OFFICEC G 1 P.1/3 411 ! , 11- OFFICE OF THE DISTRICT ATTORNEY . vg County of Ventura, State of California COLLEEN TOY WHITE Chief Assistant District Attorney MICH L D. BRADBURY KEViN J.McGEE D rid Attorney Chief Deputy District Attorney January 21, 1994 Board of Supervisors County of Ventura 800 So. Victoria Avenue Ventura, CA 93009 SUBJECT: PROPOSED COUNTY ORDINANCE REGARDING PRICE GOUGING RECOMMENDATION; It is recommended that your Board: 1. Direct County Counsel to immediately draft a proposed County Ordinance/Emergency Order prohibiting price gouging of emergency supplies, food, water and other consumer goods necessary for the health and safety of Ventura County citizens; 2. Direct that the proposed ordinance/order be placed on the next regularly scheduled Board agenda for immediate adoption; 3. Declare your Board's support for urgencylegislation to enact statewide law prohibiting price gouging. FISCAL/MANDATES IMPACT: None. DISCUSSION: As your Board is aware, last Monday's Northridge earthquake has brought devastation upon several areas of Ventura County, mast notably Simi Valley and Fillmore. Hall of Justice, 800 South Victoria Avenue, Ventura, CA 93009 (805) 654-2500 Telecopier(805) 654-3850 JAN 21 '94 15:42 805'654 3850 — PAGE.001 JAN 21 '94 15:44 DA OFFICE P.2/3 • Board of Supervisors January 21, 1994 Page 2 Fortunately, the County's Office of Emergency Services led by Sheriff Larry Carpenter has performed extraordinarily well. Nevertheless, the destruction left by the earthquake continues to have a major impact on the lives of many Ventura County citizens as they cope with the devastation and begin the process of rebuilding. In this regard, the overwhelming majority of Ventura County merchants and businesses have acted in heroic fashion to provide necessary goods and services to a needy and grateful public. Some, at great personal risk, have rushed to their stores and shops in a concerned effort to help their friends and neighbors. Unfortunately, however, an aftermath of Monday's earthquake is the occurrence of price gouging by a small group of irresponsible profiteers hoping to reap a financial reward off the misery of others. The Consumer and Environmental Protection Division of my office has received numerous complaints from local citizens complaining of huge price hikes for necessary items, such as water, milk, bread, gasoline, lumber and plumbing supplies. Based on our discussions with Los Angeles officials, similar activity is occurring in that jurisdiction. Because of the lack of any statewide provisions outlawing these practices, there is little or nothing that local law enforcement officials can presently do to stop the practice of price gouging. Nor is there currently any county or city ordinance prohibiting this conduct on a local level. As a result, Ventura County citizens must either pay or do without. Obviously, if price gouging occurs on consumer items deemed necessities such as water, food and shelter, the health and safety of county residents could be at risk_ I, therefore, urge that your Board direct the County Counsel to immediately prepare a County Ordinance and Emergency Order that would outlaw price gouging. It is my recommendation that price gouging should be made a crime and that both criminal and civil sanctions should apply. For that purpose, T have already forwarded to the County Counsel and Sheriff Carpenter a copy of the Los Angeles City Ordinance which is currently in effect and being enforced in that jurisdiction. I recognize that County Ordinances are not generally applicable within the cities. However, pursuant to Government Code section 8634 of the California Emergency Service Act, an Emergency Order can have effect within the cities during a County proclaimed local emergency. 62 Ops.Cal.Atty.Gen. 701 (1979). Currently, Ventura County is in the midst of a proclaimed local emergency. To further ensure, however, that such an ordinance would apply throughout Ventura County, I strongly urge that your Board advocate to each city council within the County that it too should pass a same or similar ordinance and order prohibiting price gouging. JAN 21 '94 15:42 805 654 3850 PAGE.002 JAN 21 '94 1545 DA OFFICE P.3/3 4 Board of Supervisors January 21, 1994 Page 3 Finally, I recommend that you support state legislation designed to outlaw price gouging throughout California. As public officials, it is incumbent that we take all necessary steps to protect Ventura County citizens from excessive and unjustified increases in prices charged for goods and services vital to their health and welfare. By acting upon the above recommendations, your Board will be providing direct assistance to the vast majority of Ventura County business men and women whose goal is to help their neighbors rather than profit from them. Very y yours, CHAEL a. : • :UR District Attorney MDB:ap pc: Richard Wittenberg Thomas Mahon James L McBride City Managers Sheriff Carpenter ddc6:progoug.bos JAN 21 '94 15:43 805 654 3850 PAGE.003