CaliforniaPrice gouging.
What it does
Under existing law, upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the executive officer of any county, city, or city and county, and for 30 days following the proclamation or declaration of emergency, it is price gouging, a misdemeanor, for any person, business, or other entity, to increase the rental price advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10%. Existing law exempts an increase from these provisions if the 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%.
More detail
This bill would instead make it an affirmative defense to charge of price gouging pursuant to that provision if an increase was directly attributable to additional costs for repairs or additions beyond normal maintenance incurred within the year prior to the proclamation or declaration and either the housing was rented, advertised for rent, or offered for rent at the time the costs were incurred or the person can prove that within a year before the proclamation or declaration, the intent to offer the housing for rent within 6 months of the repair or addition already existed.
Existing law also makes the imposition of various other price increases upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the executive officer of any county, city, or city and county, and for 30 days following the proclamation or declaration of emergency, price gouging. Existing law exempts certain price increases from these provisions.
This bill would instead frame those exemptions as affirmative defenses.
Existing law defines housing for these purposes as any rental housing with an initial lease term of no longer than one year.
This bill would expand the definition of "housing" to include any rental housing without regard to the length of the initial lease term.
Existing law defines the rental price of housing advertised, offered, or charged at a daily rate at the time of the proclamation or declaration of emergency that is advertised, offered, or charged on a periodic lease agreement after the declaration or proclamation of emergency as being 160% of the fair market rent established by the United States Department of Housing and Urban Development, which may be increased by 5% if the housing is offered for rent fully furnished.
This bill would define the rental price of housing advertised, offered, or charged at a daily rate following a declaration or proclamation of emergency, but that was not advertised, offered, or charged at a daily rate in the year prior to the declaration or proclamation of emergency as being 130 of the amount above.
This bill would incorporate additional changes to Section 396 of the Penal Code proposed by SB 493 to be operative only if this bill and SB 493 are enacted and this bill is enacted last.
By expanding the scope of a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State. Chapter 1028, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 10Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 31Assembly amendments concurred in. (Ayes 27. Noes 10.) Ordered to engrossing and enrolling.Major
- Vote recorded SB 1365 Allen Senate Third Reading By Kalra. Result: pass.Lower
- Vote recorded Unfinished Business SB1365 Allen et al. Concurrence. Result: pass.Upper
- Aug 31In Senate. Concurrence in Assembly amendments pending.
- Aug 31Read third time. Passed. (Ayes 48. Noes 19. Page 7007.) Ordered to the Senate.Passed Assembly
- Aug 20Ordered to third reading.Minor
- Aug 20Read third time and amended.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Aug 13From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 13).Major
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jul 1From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 30). Re-referred to Com. on APPR.Minor
- Jun 30
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 16From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 8. Noes 3.) (June 16). Re-referred to Com. on PUB. S.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Public Safety]. Result: pass.Lower
- Jun 16Coauthors revised.
- Jun 4Referred to Coms. on JUD. and PUB. S.Minor
- May 27In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading. Result: pass.Upper
- May 27Read third time. Passed. (Ayes 29. Noes 9. Page 4502.) Ordered to the Assembly.Passed Senate
- May 19Read second time. Ordered to third reading.Minor
- May 18Read second time and amended. Ordered to second reading.Major
- May 18From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4274.) (May 14).Major
- May 14
- Vote recorded Do pass as amended. Result: pass.Upper
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 3984.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 10Set for hearing April 21.
- Apr 8From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 10. Noes 2. Page 3757.) (April 7). Re-referred to Com. on PUB. S.Minor
- Apr 7
- Vote recorded Do pass, but first be re-referred to the Committee on [Public Safety]. Result: pass.Upper
- Mar 26From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Mar 19Set for hearing April 7.
- Mar 4Referred to Coms. on JUD. and PUB. S.Minor
- Feb 23Read first time.Minor
- Feb 23From printer. May be acted upon on or after March 23.
- Feb 20Introduced. To Com. on RLS. for assignment. To print.Introduced