Item 16 - Ordinance Prohibiting Anti-Competitive Automated Rent Price-Fixing

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EXHIBIT 1 Ordinance No. NS-XXXX Page 4 of 7 “Tenant” means a tenant, subtenant, lessee, sublessee, or any other natural person entitled to Lease any Residential Real Property. Section 8-3702 – Use and Sale of Algorithmic Devices Prohibited (a) It is unlawful for a person to sell, license, or otherwise provide an Algorithmic Device to a Landlord. (b) It is unlawful for a Landlord to use an Algorithmic Device to set rental rates or occupancy levels for Residential Real Property. For each month a violation of Section 8- 3702(b) exists or continues, and for each Residential Rental Property a Landlord uses an Algorithmic Device, it shall constitute a separate and distinct violation. Section 8-3703 – Remedies (a) A Tenant may seek injunctive relief, damages, or civil penalties of up to $1,000 per violation of this Article, in a civil action against a Landlord. In an action brought under this Article, a prevailing Tenant shall recover costs and reasonable attorney’s fees. A prevailing Tenant includes a Tenant granted an order for injunctive relief. A Lease provision that limits a Tenant from recovering attorney’s fees shall not be enforceable against a Tenant’s claim for attorney’s fees that arise under this Article. (b) The remedies under Section 8-3703 are cumulative and are in addition to any other remedies in this Article or at law, statute, or ordinance. Section 4. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change to the environment, as there is no possibility it will have a significant effect on the environment and it is not a “project” as defined in section 15378 of the State CEQA Guidelines. Furthermore, the proposed Ordinance falls within the “common sense” CEQA exemption set forth in CEQA Guidelines section 15061(b)(3), excluding projects where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.