Price gouging.

Plain English Breakdown

The official source does not specify if state funding is required for local agencies. This claim was removed due to lack of supporting evidence.

Price Gouging Law

This law makes it illegal to charge more than 10% over normal prices for goods and services during emergencies, and requires the Department of Justice and local prosecutors to work together to enforce this rule.

What This Bill Does

• Makes it a misdemeanor to sell or offer to sell certain items at more than 10% above their regular price during declared emergencies.
• Requires the California Department of Justice and local prosecutors to form partnerships to enforce these rules.

Who It Names or Affects

• People who sell goods or services during emergencies.
• Local prosecutors and the California Department of Justice.

Terms To Know

Emergency

A situation declared by a government official, such as the President, Governor, or local executive officer, that requires special measures to protect public safety.

Price Gouging

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

Limits and Unknowns

• The exact costs of enforcing the law are not known until reviewed by the Commission on State Mandates.
• It is unclear how long it will take to establish partnerships between the Department of Justice and local prosecutors.

Official Summary Text

SB 368, as amended, Smallwood-Cuevas.
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 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 require the Department of Justice and local
district attorneys
prosecutors
to establish partnerships to enforce those provisions. By increasing the duties of local prosecutors, 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Current Bill Text

Download Bill PDF