Price gouging.

Plain English Breakdown

The official source material does not provide details on enforcement mechanisms or the handling of emergencies lasting longer than 60 days.

Price Gouging Law

AB-380 extends the period during which businesses cannot raise prices more than 10% above normal levels after an emergency declaration from 30 days to 60 days and increases fines for violations.

What This Bill Does

• Extends the time period when businesses cannot raise prices by more than 10% after an emergency is declared from 30 days to 60 days.
• Increases the fine for businesses caught price gouging during emergencies from $10,000 to $25,000.

Who It Names or Affects

• Businesses and individuals who sell goods or services during emergencies.
• Landlords of rental properties, both residential and commercial.
• Tenants living in rental homes or working in commercial spaces.

Terms To Know

Price Gouging

Charging much higher prices for goods or services than usual during emergencies when people need them more.

State of Emergency

A situation declared by the government where normal rules are suspended to deal with a crisis like a natural disaster.

Limits and Unknowns

• The bill does not specify what happens if an emergency lasts longer than 60 days.
• It is unclear how local agencies will enforce these new rules during emergencies.
• There may be additional costs for local governments to implement and enforce this law.

Official Summary Text

AB 380, as amended, Mark González.
Price gouging.
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 or 180 days, as specified, following the proclamation or declaration of emergency, it is a misdemeanor, punishable by up to one year in county jail, a fine of $10,000, or both that imprisonment and fine, for a person, contractor, business, or other entity to sell or offer to sell certain goods or services for a price of more than 10% greater than the price charged by that person immediately prior to the proclamation or declaration of emergency.
This bill would instead make that misdemeanor applicable, for those provisions for which the misdemeanor is applicable for a period of 30 days following the
proclamation or declaration of emergency, for a period of
90
60
days. The bill would, for an entity or person other than a natural person, make that misdemeanor punishable by a fine of $25,000. By expanding the scope of a crime, this bill would impose a state-mandated local program.
Under existing law, as described above, it is unlawful to increase the rental price for housing by more than 10%, or evict any residential tenant of residential housing, upon the proclamation or declaration of emergency. Existing law defines “housing” for purposes of these provisions 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. The bill would make the prohibitions on increasing the rental price by more than 10% and eviction generally applicable to commercial real property. By expanding the scope of a crime, this 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.

Current Bill Text

Download Bill PDF