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Home My WebLink About18-172 � r r r, � r i r , r r, r/, ,G /r/.. /.. r,. ,,. r. ,.,,, .r. / r,/,rr /ar. r✓, br r,. J /. IN r, J , /f rJr��„!/rJ� r „1, ru, r /I/ �//, ,f ir� r // r q 9�� ✓ r` / J 1, r r ,� / �r rr/,!�j ��/fy ff��,�r r l� ,;i,�Y/r,, i`!„" ,„ ,;r„x. , 'r' ,' .r„(�//J ,J N o r,/ <r,� r r % /� 'f ,r^; i /, r ;, /r -r„ r ,' �l�lJrr ;�// ¢r/✓ ,',;..�, 11 l� ;/ / � t r., "r r r ” ✓ /, / / / /, /, r, i a / 1,cr ,/ri, ✓r � ve / �, I C /', ,//r; / 1 s,,,tG l !;/ l r, r r //t, v r r r / r� ,,. o W I �,, r.r r /:", Il ri�� ✓r r, / ,� I/, O,r, ,, /r,r r/, ,/ / / r/�J. rm iri4 I� r Re5aiuitiota No. 18-172 RESOLUTION IMPOSING A PROHIBITION ON PRIG GOUGING DURING AND FOLLOWING THE EMERGENCY DECLARED 4N NOVEiWIBER g, 2018 DUE TO THE CAMP FIRE WHEREAS,the Camp Fire of November 2018 destroyed over 153,0010 acres and burned over 15,000 structures in Butte County,resulting in a large displacement of residlents from the Town of(Paradise and other surrounding communities within the County of Butte; and WHEREAS, on November 8, 2018, Chief Administrative Officer Shari (McCracken declared a Local Emergency due to the Camp Fire, and was subsequently ratified by the Board of Supervisors on November 13, 2018, in order to receive State and federal aid to help with recovery efforts in the areas affected by the Camp Fire; and WHEREAS, on November 9, 2018, the Governor of California proclaimed a State of Emergency for the County of Butte, and on November 12, 2018, the President of the United States declared the existence of a major disaster in the State of California and ordered Federal)aid to supplement State and local recovery efforts in the areas affected by wildfire; and WHEREAS,the County of Butte has been alerted to the possibility of price gouging by persons offering housing for rent or other needed goods and services within the County, and have seen from other similar events that such gouging may also include eviction of existing tenants of rental property,so that landlords may take advantage of fire victims whose insurance companies may pay rental rates in excess of what was previously charged for existing tenants; and WHEREAS, California Penal Code section 396 controls price increases for rental housing, goods, and services related to emergency response and recovery for an initial period of 30 days after declaration of an emergency by the President of the United States, the Governor of the State of California, or other local agency, and generally prohibits charging a price that exceeds by more than 10i'o of the price of the rental unit, good, or service before the declaration of the emergency; and WHEREAS, California Penal Code section 396 permits a local legislative body to extend the price controls for additional 30 day periods as needed to protect the lives, property, or welfare of the public. California Penal Code section 396 further allows for a county to prohibit the same or similar conduct, or impose a more severe penalty for the conduct prohibited by Penal Code section 396; and WHEREAS, California Penal Code section 396 applies to hotels, motels, and any other rental housing restricting set rates and leases to what was advertised immediately prior to the emergency declaration; and WHEREAS,the Butte County Board of Supervisors has previously found that the County of Butte is experiencing a housing crisis, and prior to the Camp Fire there existed a severe lack of rental housing, particularly rental housing that is affordable to lower and moderate-income residents; and WHEREAS, the extreme number of housing units damaged in the Town of Paradise and the surrounding areas increases the pressure on rental housing demand and shortage in the County of Butte by several orders of magnitude;and WHEREAS, the destruction of housing units exacerbates the pressure of persons who lived and worked in the Town of Paradise and those who will be working to restore the viability of the Town of Paradise to relocate to other housing far from their home due to the housing shortage. NOW,THEREFORE, BE IT RESOLVED that the Butte County Board of Supervisors, on its own behalf and on behalf of the residents of the County of Butte, finds and declares that the adoption of a resolution prohibiting price gouging in the aftermath of the Camp Fire is necessary for the immediate preservation of the public peace, health, and safety of residents living within the County of Butte. BE IT FURHTER RESOLVED that the Butte County Board of Supervisors, on its own behalf and on behalf of the residents of the County of Butte, hereby declares the following prohibitions: 1. Prohibition on Price Gouging. a. Rental Housing. It is unlawful for any person, business, or other entity during the emergency declaration period to rent, lease, or offer to rent or lease, or increase the rental price to any existing or prospective tenant for any housing unit,of any kind,within the County of Butte,-for a price of more than 10% above the average retail price charged for that housing unit immediately prior to the occurrence of a Declared Emergency, unless that person, business, or entity can prove that the increase in price is directly attributable to additional costs for labor or materials used to provide the rental unit, in which case,the price shall not be more than 10%above the total cost of providing that rental unit. b. Transient Housing. It is unlawful for any person, business, or other entity during the emergency declaration period to rent or lease a hotel or motel room, or other short-term rental unit, including a vacation rental unit, in the County of Butte for more than 10%above the hotel, motel,or other short- term or long-term rental's regular rates, as advertised immediately prior to the occurrence of a Declared Emergency, unless that person, business, or 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. c. Sales of Goods and Services. It is unlawful for any person,contractor, business,or other entity during the emergency declaration period 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, in the County of Butte,for a price of more than 10%above the price charged by that person for those goods or services immediately prior to the occurrence of a Declared 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 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,the price represents no more than 10%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. Z. Restrictions ofEvictions. a. It shal I be, unlawfu I for any person to evict an existing tenant or terminate an existing lease or month- to-month rental agreement during the emergency declaration period and subsequently rent orlease the same dwelling unit, including vacation rental units, in the County of Butte for more than the average retail price, unless such person can prove that the excess isdirectly attributable to additional costs resulting from the labor or materials necessary to provide the rental. |nsuch instances, only the actual cost increase may beadded 10the average retail price. This,section does not prohibit amowner from evicting a tenant for any lawful reason, including pursuant to section 1161 of the Code of Civil Procedure. It shall net be m violation of this subd:ivi'siom for m person, business, or other entity tn continue an eviction process that was |anufu|UV begun prior to the proclamation or declaration of an emergency. 3. Repair and Reconstruction Services. a. During the emergency declaratimn period, it shall be unlawful fmr 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 10Y6 above the price charged by that person for those services immediately prior to the proclamation ordeclaration ofemergency. However, agreater price increase isnot unlawful ifthat person can prove that the increase in price was directly attributable to additional costs imposed on it bythe smpp�Uerof the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 96 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 ofthe state ofemergency nrlocal emergency. Nothing inthis mesnUmtiomshall limit,shorten, or otherwise effect the previsions of Penal Code section 396 applicable to repair or reconstruction services. BE IT IFURHTER RESOLVED that the, period during and following the local emergency declaration shall constitute from November 8, 2018, through May 7, 2019,for a period of188days. PASSED AND ADOPTED bythe Butte County Board VfSupervisors this 11'h day mfDecember,281O,bVthe following vote: AYES: Supervisors Connelly, Wahl, Kirk,Teeter, and Chair Lambert NOES; None ABSENT: None NOT VOTING: Nome Steve Lambeqj�'Clhair Butte County Board of Supervisors ATTEST: Shari #8:Cracken, Chief Administrative Officer and Cler