Selling goods on San Jose streets just got tougher for vendors as the city is cracking down on unlicensed peddling amid a big jump in unpermitted sales outside of major sporting and other events over the past few years.
San Jose city leaders agreed to amend the city code to streamline enforcement efforts to further declutter sidewalks and improve public safety while removing barriers for vendors to sell goods legally.
The changes expand the city’s authority to impound goods and equipment due to unsafe practices to force compliance and come after the city successfully implemented pilot programs to stop vendors from selling without a license.
“I think this strikes the right balance of helping people comply with all relevant laws — from public right-of-way to public health, all of which are important — but creating pathways for entrepreneurs to still sell their products and be successful and thrive in our city,” Mayor Matt Mahan said.
State law prevents cities from enacting a blanket ban on peddling but allows them to enact reasonable time, place and manner restrictions.
The city previously amended the peddler permit ordinance in 2019, which included permit display requirements, distance restrictions from special events, schools, farmers’ and flea markets, and major facilities like the SAP Center, PayPal Park, Excite Ballpark, and the McEnery Convention Center on event days.
But despite the city’s past efforts, unlicensed peddling has remained a problem.
Debbie Degutis, managing director of Christmas in the Park, said families have told the organization that they have stopped attending events because they feel unsafe.
“There were several times last year, during Christmas in the Park, where I could not get Santa from the hotel to the park because the sidewalks were so crowded,” Degutis said. “Even when I was saying, ‘Hey, Santa coming through,’ I could not get him safely through. We had to walk out on the street. And if Santa has to do that, that means our kids and our families have to do that too.”
She also noted that the unlicensed activity has impacted legal businesses that rely on holiday revenues while hampering the organization’s ability to raise fees to cover the cost of hosting them in the park.
Representatives from San Jose Sharks and San Jose Earthquakes expressed similar safety concerns around the activity outside of the SAP Center and PayPal Park.
More recently, the city tested out pilot programs focused on enforcement to create a deterrent effect on unlicensed peddlers near the SAP Center and the 2024 downtown holiday events. Police Chief Paul Joseph said the pilot program’s enforcement efforts have had a deterrent effect leading to 1,245 pounds of confiscated food, six administrative citations and 695 park citations issued by the Department of Transportation.
Among the changes the city also sought was to delineate when police can impound goods, equipment, and merchandise, including preventing vendors from leaving those items unattended.
While the city is looking to increase compliance, it also is exploring ways for unlicensed vendors to gain the proper permits.
One potential barrier the city is removing for vendor permits is the insurance requirement. Instead, it asks prospective vendors to sign an agreement to protect San Jose’s legal interests, freeing the city from any potential harm, such as financial losses or damages.
District 5 Councilmember Peter Ortiz emphasized the need for the city to provide a balanced approach to enforcing regulation while also recognizing the difficulties vendors face. He said if given the means, he believed many vendors would operate in a legal fashion.
“The unfortunate truth is that while some bad actors disregard public safety and create unsafe conditions, they do not represent all of our street vendors,” Ortiz said. “There are vendors who are simply trying to make an honest living and want to comply with the law, but they often face barriers that make it difficult to navigate.”
Armando Ricardez, Mesa Redonda director at Prosperity Labs, implored the city to commit more resources to education and help process applications promptly. He noted the success of mentoring programs that have resulted in many vendors graduating and opening brick-and-mortar locations this year.
“Outreach before enforcement is crucial, so we don’t disrupt the ability of these vendors that rely on their food sales in order to pay the rent and lose their dwelling place,” Ricardez said.