SB 36: Price gouging: state of emergency.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-09-13
Current Status:
Failed
(2026-03-02: Veto sustained.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Existing law defines housing as any rental housing with an initial lease term of no longer than one year.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. The bill would remove the one-year lease term limit from the definition of housing.
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Existing law defines housing as any rental housing with an initial lease term of no longer than one year.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. The bill would remove the one-year lease term limit from the definition of housing.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.This bill, until January 1, 2031, would additionally authorize a search warrant to be issued, upon application by the Department of Justice, when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring. The bill would require the department, on or before January 1, 2030, to submit a report to the Legislature regarding search warrants issued pursuant to this provision.(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end and that those provisions apply in all counties in the proclamation or declaration of emergency as well as all counties within a 25-mile radius of the counties in the proclamation or declaration of emergency. end. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.
This bill bill, until January 1, 2031, would additionally authorize a search warrant to be issued issued, upon application by the Department of Justice, when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring. The bill would require the department, on or before January 1, 2030, to submit a report to the Legislature regarding search warrants issued pursuant to this provision.
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end and that those provisions apply in all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile 25-mile radius of the counties in the proclamation or declaration of emergency. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.
This bill would additionally authorize a search warrant to be issued when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring.
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to engage in, to, among other things, price gouging gouge during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined. defined, at the time the violation occurred.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end and that those provisions apply in all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.
This bill would additionally authorize a search warrant to be issued when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring.
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to engage in, among other things, price gouging during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property property, or welfare of the citizens.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end and that those provisions apply in all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency. The bill would require a housing listing platform platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, alert remove a listing when notified by local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the platform violates the price gouging provisions and to establish and maintain a policy informing a person housing providers that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.
This bill would additionally authorize a search warrant to be issued when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring.
(1)Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2)Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to engage in, among other things, price gouging during a state of emergency or local emergency.
(3)Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined.
(4)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. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property or welfare of the citizens.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end and that those provisions apply in all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency. The bill would require a housing listing platform to, among other things, alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the platform violates the price gouging provisions and to establish and maintain a policy informing a person that listings are prohibited from violating the above-described provisions, as specified.
This bill would define housing listing platform for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(5)Existing law allows a search warrant to be issued upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched, and enumerates the grounds upon which a search warrant may be issued.
This bill would additionally authorize a search warrant to be issued when the property or things to be seized consists of evidence that tends to show that specified price gouging violations have occurred or are occurring.
Existing law prescribes the content of a summons in a civil action and how proof of service of a summons shall be made.This bill would make nonsubstantive changes to the latter provision.Existing law prescribes the content of a summons in a civil action and how proof of service of a summons shall be made.
This bill would make nonsubstantive changes to the latter provision.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(5)Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
(6)Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency at the time the violation occurred. As used in this paragraph, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency at the time the violation occurred.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency at the time the violation occurred.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with a lease term, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(5)Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
(6)Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency at the time the violation occurred. As used in this paragraph, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency at the time the violation occurred.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency at the time the violation occurred.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, housing by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, a lease term, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:(1)When the property was stolen or embezzled.(2)When the property or things were used as the means of committing a felony.(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.(6)When there is a warrant to arrest a person.(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.(17)(A)When all of the following apply:(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.(iii)The sample will be drawn from the person in a reasonable, medically approved manner.(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.(C)The person has failed to relinquish the ammunition as required by law.(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.(23)(A)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.(B)A search warrant may be issued pursuant to this paragraph only upon application by the Department of Justice.(C)(i)The department shall prepare and submit a report to the Legislature on or before January 1, 2030, detailing the number of search warrants applied for pursuant to this paragraph; the number of search warrants issued pursuant to this paragraph; and the number of price gouging violations, as specified in subdivision (d), (e), or (f) of Section 396, that were charged and in how many different cases the charging decision was made as a result of evidence seized through a search warrant issued pursuant to this paragraph.(ii)A report to be submitted pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(D)This paragraph shall remain in effect until January 1, 2031, and as of that date is inoperative.(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.(m)This section shall become operative on January 1, 2026.(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(5)Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
(6)Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency at the time the violation occurred. As used in this paragraph, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency at the time the violation occurred.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency at the time the violation occurred.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(n)This section applies to all counties in the proclamation or declaration of emergency as well as all counties within a 25-mile radius of the counties in the proclamation or declaration of emergency.SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:
(1)When the property was stolen or embezzled.
(2)When the property or things were used as the means of committing a felony.
(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.
(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.
(6)When there is a warrant to arrest a person.
(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.
(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.
(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.
(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.
(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.
(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.
(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.
(17)(A)When all of the following apply:
(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.
(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.
(iii)The sample will be drawn from the person in a reasonable, medically approved manner.
(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.
(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.
(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.
(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.
(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.
(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:
(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.
(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.
(C)The person has failed to relinquish the ammunition as required by law.
(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(23)(A)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.
(B)A search warrant may be issued pursuant to this paragraph only upon application by the Department of Justice.
(C)(i)The department shall prepare and submit a report to the Legislature on or before January 1, 2030, detailing the number of search warrants applied for pursuant to this paragraph; the number of search warrants issued pursuant to this paragraph; and the number of price gouging violations, as specified in subdivision (d), (e), or (f) of Section 396, that were charged and in how many different cases the charging decision was made as a result of evidence seized through a search warrant issued pursuant to this paragraph.
(ii)A report to be submitted pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.
(D)This paragraph shall remain in effect until January 1, 2031, and as of that date is inoperative.
(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.
(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:
(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.
(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.
(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.
(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.
(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.
(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.
(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.
(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.
(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.
(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.
(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.
(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.
(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.
(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.
(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.
(m)This section shall become operative on January 1, 2026.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(5)Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
(6)Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency at the time the violation occurred. As used in this paragraph, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency at the time the violation occurred.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency at the time the violation occurred.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(n)This section applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile 25-mile radius of the counties in the proclamation or declaration of emergency.
SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:
(1)When the property was stolen or embezzled.
(2)When the property or things were used as the means of committing a felony.
(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.
(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.
(6)When there is a warrant to arrest a person.
(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.
(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.
(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.
(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.
(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.
(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.
(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.
(17)(A)When all of the following apply:
(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.
(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.
(iii)The sample will be drawn from the person in a reasonable, medically approved manner.
(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.
(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.
(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.
(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.
(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.
(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:
(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.
(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.
(C)The person has failed to relinquish the ammunition as required by law.
(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(23)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.
(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.
(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:
(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.
(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.
(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.
(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.
(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.
(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.
(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.
(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.
(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.
(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.
(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.
(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.
(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.
(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.
(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.
(m)This section shall become operative on January 1, 2026.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(5)Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
(6)Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Engage in a violation of Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency, as defined in Section 17206.3 of the Business and Professions Code. emergency at the time the violation occurred. As used in this paragraph, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency. emergency at the time the violation occurred.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency. emergency at the time the violation occurred.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency at the time the violation occurred are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(n)This section applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:
(1)When the property was stolen or embezzled.
(2)When the property or things were used as the means of committing a felony.
(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.
(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.
(6)When there is a warrant to arrest a person.
(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.
(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.
(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.
(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.
(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.
(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.
(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.
(17)(A)When all of the following apply:
(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.
(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.
(iii)The sample will be drawn from the person in a reasonable, medically approved manner.
(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.
(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.
(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.
(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.
(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.
(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:
(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.
(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.
(C)The person has failed to relinquish the ammunition as required by law.
(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(23)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.
(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.
(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:
(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.
(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.
(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.
(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.
(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.
(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.
(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.
(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.
(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.
(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.
(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.
(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.
(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.
(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.
(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.
(m)This section shall become operative on January 1, 2026.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)A Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall shall, during the period of 30 days following the proclamation or declaration, do all of the following:
(1)Alert Remove a listing when notified by local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a the listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing a person housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the persons housing providers account.
(3)Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
(3)(4)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(4)(5)Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of means, including a link to a dedicated web page, online portal, or point of contact and ensure timely replies to email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes. processes, and related timelines for response.
(5)(6)Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
(b)The policy and mechanism required by this subdivision policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users.
(c)For purposes of this section, housing both of the following definitions apply:
(1)Housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
(2)State of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation any of any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed in compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Engage in a violation of Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency, as defined in Section 17206.3 of the Business and Professions Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or a local emergency.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, veteran, or person displaced due to a state of emergency or local emergency.
(3)Whether one or more senior citizens, disabled persons, veterans, or persons displaced due to a state of emergency or local emergency are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(n)This section applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:
(1)When the property was stolen or embezzled.
(2)When the property or things were used as the means of committing a felony.
(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.
(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.
(6)When there is a warrant to arrest a person.
(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.
(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.
(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.
(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.
(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.
(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.
(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.
(17)(A)When all of the following apply:
(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.
(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.
(iii)The sample will be drawn from the person in a reasonable, medically approved manner.
(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.
(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.
(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.
(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.
(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.
(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:
(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.
(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.
(C)The person has failed to relinquish the ammunition as required by law.
(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(23)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.
(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.
(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:
(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.
(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.
(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.
(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.
(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.
(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.
(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.
(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.
(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.
(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.
(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.
(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.
(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.
(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.
(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.
(m)This section shall become operative on January 1, 2026.
(a)(1)In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
(2)Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206.
(b)As used in this section, state of emergency and local emergency have the same meaning as in Section 396 of the Penal Code.
SEC. 2.Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read:1.4E.HOUSING LISTING PLATFORMS1749.9.(a)A housing listing platform shall do all of the following:
(1)Alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates Section 396 of the Penal Code.
(2)Establish and maintain a policy informing a person that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the persons account.
(3)Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
(4)Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes.
(5)Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent price gouging.
(b)The policy and mechanism required by this subdivision shall be publicly posted and readily accessible to users.
(c)For purposes of this section, housing listing platform means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
SEC. 3.Section 1770 of the Civil Code is amended to read:1770.(a)The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful:
(1)Passing off goods or services as those of another.
(2)Misrepresenting the source, sponsorship, approval, or certification of goods or services.
(3)Misrepresenting the affiliation, connection, or association with, or certification by, another.
(4)Using deceptive representations or designations of geographic origin in connection with goods or services.
(5)Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have.
(6)Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
(7)Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
(8)Disparaging the goods, services, or business of another by false or misleading representation of fact.
(9)Advertising goods or services with intent not to sell them as advertised.
(10)Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(11)Advertising furniture without clearly indicating that it is unassembled if that is the case.
(12)Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
(13)Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
(14)Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.
(15)Representing that a part, replacement, or repair service is needed when it is not.
(16)Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not.
(17)Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(18)Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
(19)Inserting an unconscionable provision in the contract.
(20)Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the sellers costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
(21)Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
(22)(A)Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
(B)This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
(23)(A)The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation any of the following:
(i)Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code.
(ii)Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations.
(iii)Section 22684, 22685, 22686, or 22687 of the Financial Code.
(iv)Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code.
(B)A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.
(24)(A)Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services.
(B)For purposes of this paragraph:
(i)Public social services means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them.
(ii)Public social services also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits.
(iii)Unreasonable fee means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following:
(I)The time and effort required.
(II)The novelty and difficulty of the services.
(III)The skill required to perform the services.
(IV)The nature and length of the professional relationship.
(V)The experience, reputation, and ability of the person providing the services.
(C)This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons.
(25)(A)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that does not include the following statement in the same type size and font as the term veteran or any variation of that term:
(i)I am not authorized to file an initial application for Veterans Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf. The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event.
(ii)The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(B)Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term veteran or the variation of that term:
This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.
(i)The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans benefits or entitlements.
(ii)The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering.
(26)Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumers right to receive future pension or veterans benefits.
(27)Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code.
(28)(A)Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service:
(i)The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number.
(ii)(I)The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
(II)(ia)The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph.
(ib)This subclause applies only to solicitations made by physical mail.
(B)For purposes of this paragraph:
(i)Consumer financial product or service has the same meaning as defined in Section 90005 of the Financial Code.
(ii)(I)Covered person has the same meaning as defined in Section 90005 of the Financial Code.
(II)Covered person does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(iii)Solicitation means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. Solicitation does not include any of the following:
(I)Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location.
(II)Communication via a telephone, mail, or electronic communication that was initiated by a consumer.
(III)A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code.
(29)(A)Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
(i)Taxes or fees imposed by a government on the transaction.
(ii)Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
(B)Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed compliance with this paragraph.
(C)(i)For purposes of this subparagraph, financial entity means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code.
(ii)A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction:
(I)The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.).
(II)The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.).
(III)Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.).
(IV)The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(V)The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(VI)The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639).
(VII)Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive.
(VIII)The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code).
(IX)The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(X)The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).
(XI)Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive.
(D)(i)Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service.
(ii)A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.
(iii)Grocery delivery service means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer.
(iv)The exemption in this subparagraph does not apply to a third-party food delivery platform, as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform.
(30)Engage in a violation of Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
(b)(1)It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, mortgage broker or lender includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
(2)This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction.
(c)As of July 1, 2025, any disclosure, advertisement, or notice that is required to be clearly or clearly and conspicuously made must have text that is clear and conspicuous, as defined in subdivision (u) of Section 1791.
(d)This section shall become operative on July 1, 2024.
SEC. 4.Section 3345 of the Civil Code is amended to read:3345.(a)This section shall apply only in actions brought by, on behalf of, or for the benefit of those individuals specified in paragraphs (1) to (3), inclusive, to redress unfair or deceptive acts or practices or unfair methods of competition.
(1)Senior citizens, as defined in subdivision (f) of Section 1761.
(2)Disabled persons, as defined in subdivision (g) of Section 1761.
(3)Veterans, as defined in Section 18540.4 of the Government Code.
(4)Persons displaced due to a state of emergency or a local emergency, as defined in Section 17206.3 of the Business and Professions Code.
(b)Whenever a trier of fact is authorized by a statute to impose either a fine, or a civil penalty or other penalty, or any other remedy the purpose or effect of which is to punish or deter, and the amount of the fine, penalty, or other remedy is subject to the trier of facts discretion, the trier of fact shall consider the factors set forth in paragraphs (1) to (3), (4), inclusive, in addition to other appropriate factors, in determining the amount of fine, civil penalty or other penalty, or other remedy to impose. Whenever the trier of fact makes an affirmative finding in regard to one or more of the factors set forth in paragraphs (1) to (3), (4), inclusive, it may impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding.
(1)Whether the defendant knew or should have known that their conduct was directed to one or more senior citizens, disabled persons, or veterans. veterans, or persons displaced due to a state of emergency or a local emergency.
(2)Whether the defendants conduct caused one or more senior citizens, disabled persons, or veterans veterans, or persons displaced due to a state of emergency or local emergency to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the senior citizen, disabled person, or veteran. veteran, or person displaced due to a state of emergency or local emergency.
(3)Whether one or more senior citizens, disabled persons, or veterans veterans, or persons displaced due to a state of emergency or local emergency are substantially more vulnerable than other members of the public to the defendants conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendants conduct.
SEC. 5.Section 396 of the Penal Code is amended to read:396.(a)The Legislature hereby finds that during a state of emergency or local emergency, including, but not limited to, an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. It is the intent of the Legislature in enacting this act to protect citizens from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers, whether those goods and services are offered or sold in person, in stores, or online. Further, it is the intent of the Legislature that this section be liberally construed so that its beneficial purposes may be served. served, including, but not limited to, curbing price gouging.
(b)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10 percent greater than the total of the cost to the seller plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency. If the person, contractor, business, or other entity did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency, it may not charge a price that is more than 50 percent greater than the cost thereof to the vendor as cost is defined in Section 17026 of the Business and Professions Code.
(c)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 180 days following that proclamation or declaration, it is unlawful for a contractor to sell or offer to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency. However, a greater price increase is not unlawful if that person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for labor or materials used to provide the services, during the state of emergency or local emergency, and the price represents no more than 10 percent greater than the total of the cost to the contractor plus the markup customarily applied by the contractor for that good or service in the usual course of business immediately prior to the onset of the state of emergency or local emergency.
(d)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, it is unlawful for an owner or operator of a hotel or motel to increase the hotel or motels regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent. However, a greater price increase is not unlawful if the owner or operator can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in its business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.
(e)Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period the proclamation or declaration is extended by the applicable authority, it is unlawful for any person, business, or other entity, to increase the rental price, as defined in paragraph (11) of subdivision (j), advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent. However, a greater rental price increase is not unlawful if that 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 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration. It shall not be a defense to a prosecution under this subdivision that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services, except as provided in paragraph (11) of subdivision (j) with respect to furniture, or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. This subdivision does not authorize a landlord to charge a price greater than the amount authorized by a local rent control ordinance.
(f)It is unlawful for a person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any city, county, or city and county, and for a period of 30 days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.
(g)(1)The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, or the Governor, or the Legislature, if deemed necessary to protect the lives, property, or welfare of the citizens. Each extension by a local legislative body or local official shall not exceed 30 days. An extension may also authorize specified price increases that exceed the amount that would be permissible under this section during the initial 30 or 180 days after a proclamation or declaration of emergency.
(2)An extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end, consistent with Section 8629 of the Government Code.
(h)A violation of this section is a misdemeanor punishable by imprisonment in a county jail for a period not exceeding one year, by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(i)A violation of this section shall constitute an unlawful business practice and an act of unfair competition within the meaning of Section 17200 of the Business and Professions Code. The remedies and penalties provided by this section are cumulative to each other, the remedies under Section 17200 of the Business and Professions Code, and the remedies or penalties available under all other laws of this state.
(j)For the purposes of this section, the following terms have the following meanings:
(1)State of emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.
(2)Local emergency means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California.
(3)Consumer food item means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
(4)Repair or reconstruction services means services performed by any person who is required to be licensed under the Contractors State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), for repairs to residential or commercial property of any type that is damaged as a result of a disaster.
(5)Emergency supplies includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
(6)Medical supplies includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
(7)Building materials means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
(8)Gasoline means any fuel used to power any motor vehicle or power tool.
(9)Transportation, freight, and storage services means any service that is performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.
(10)Housing means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobilehome park or campground.
(11)Rental price for housing means any of the following:
(A)For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect and which is subject to any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent, the actual rental price paid by the previous tenant or the amount specified in subparagraph (B), whichever is greater. This amount may be increased by 5 percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(B)For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, 160 percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by 5 percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.
(C)Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph (A), if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph (B), if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.
(D)For mobilehome spaces rented to existing tenants at the time of the proclamation or declaration of emergency and subject to a local rent control ordinance, the amount authorized under the local rent control ordinance. For new tenants who enter into a rental agreement for a mobilehome space that is subject to rent control but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobilehome park. For mobilehome spaces not subject to a local rent control ordinance and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.
(12)Goods has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
(13)Price gouging is the unlawful conduct of charging higher or greater prices as specified in subdivisions (b) to (f), inclusive.
(k)This section does not preempt any local ordinance prohibiting the same or similar conduct or imposing a more severe penalty for the same conduct prohibited by this section.
(l)A business offering an item for sale, or a service, at a reduced price immediately prior to the proclamation or declaration of the emergency may use the price it normally charges for the item or service to calculate the price pursuant to subdivision (b) or (c).
(m)This section does not prohibit an owner from evicting a tenant for any lawful reason, including pursuant to Section 1161 of the Code of Civil Procedure.
(n)This section applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
SEC. 6.Section 1524 of the Penal Code, as added by Section 11.5 of Chapter 544 of the Statutes of 2024, is amended to read:1524.(a)A search warrant may be issued upon any of the following grounds:
(1)When the property was stolen or embezzled.
(2)When the property or things were used as the means of committing a felony.
(3)When the property or things are in the possession of a person with the intent to use them as a means of committing a public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing them from being discovered.
(4)When the property or things to be seized consist of an item or constitute evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
(5)When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, in violation of Section 311.3, or possession of matter depicting sexual conduct of a person under 18 years of age, in violation of Section 311.11, has occurred or is occurring.
(6)When there is a warrant to arrest a person.
(7)When a provider of electronic communication service or remote computing service has records or evidence, as specified in Section 1524.3, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of a person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom that person may have delivered them for the purpose of concealing them or preventing their discovery.
(8)When the property or things to be seized include an item or evidence that tends to show a violation of Section 3700.5 of the Labor Code or tends to show that a particular person has violated Section 3700.5 of the Labor Code.
(9)When the property or things to be seized include a firearm or other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault as provided in Section 18250. This section does not affect warrantless seizures otherwise authorized by Section 18250.
(10)When the property or things to be seized include a firearm or other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
(11)When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms or ammunition or both pursuant to Section 6389 of the Family Code, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a protective order has been issued pursuant to Section 6218 of the Family Code, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(12)When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code has been committed or is being committed, tends to show that a particular person has committed a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code, or will assist in locating an individual who has committed or is committing a felony, a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code. A tracking device search warrant issued pursuant to this paragraph shall be executed in a manner meeting the requirements specified in subdivision (b) of Section 1534.
(13)When a sample of the blood of a person constitutes evidence that tends to show a violation of Section 23140, 23152, or 23153 of the Vehicle Code and the person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 23612 of the Vehicle Code, and the sample will be drawn from the person in a reasonable, medically approved manner. This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(14)Beginning January 1, 2016, the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order that has been issued pursuant to Division 3.2 (commencing with Section 18100) of Title 2 of Part 6, if a prohibited firearm or ammunition or both is possessed, owned, in the custody of, or controlled by a person against whom a gun violence restraining order has been issued, the person has been lawfully served with that order, and the person has failed to relinquish the firearm as required by law.
(15)Beginning January 1, 2018, the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 29800, 29805, 29815, or 29825, and the court has made a finding pursuant to subdivision (c) of Section 29810 that the person has failed to relinquish the firearm as required by law.
(16)When the property or things to be seized are controlled substances or a device, contrivance, instrument, or paraphernalia used for unlawfully using or administering a controlled substance pursuant to the authority described in Section 11472 of the Health and Safety Code.
(17)(A)When all of the following apply:
(i)A sample of the blood of a person constitutes evidence that tends to show a violation of subdivision (b), (c), (d), (e), or (f) of Section 655 of the Harbors and Navigation Code.
(ii)The person from whom the sample is being sought has refused an officers request to submit to, or has failed to complete, a blood test as required by Section 655.1 of the Harbors and Navigation Code.
(iii)The sample will be drawn from the person in a reasonable, medically approved manner.
(B)This paragraph is not intended to abrogate a courts mandate to determine the propriety of the issuance of a search warrant on a case-by-case basis.
(18)When the property or things to be seized consists of evidence that tends to show that a violation of paragraph (1), (2), or (3) of subdivision (j) of Section 647 has occurred or is occurring.
(19)(A)When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to a person. The data accessed by a warrant pursuant to this paragraph shall not exceed the scope of the data that is directly related to the offense for which the warrant is issued.
(B)For the purposes of this paragraph, recording device has the same meaning as defined in subdivision (b) of Section 9951 of the Vehicle Code. The scope of the data accessible by a warrant issued pursuant to this paragraph shall be limited to the information described in subdivision (b) of Section 9951 of the Vehicle Code.
(C)For the purposes of this paragraph, serious bodily injury has the same meaning as defined in paragraph (4) of subdivision (f) of Section 243.
(20)When the property or things to be seized consists of evidence that tends to show that a violation of Section 647.9 has occurred or is occurring. Evidence to be seized pursuant to this paragraph shall be limited to evidence of a violation of Section 647.9 and shall not include evidence of a violation of a departmental rule or guideline that is not a public offense under California law.
(21)If the property to be seized includes ammunition and all of the following criteria are satisfied:
(A)The property is owned by, in the possession of, or in the custody or control of a person who is subject to the prohibition set forth in Section 8103 of the Welfare and Institutions Code.
(B)The person has been lawfully served with the order required by Section 8103 of the Welfare and Institutions Code.
(C)The person has failed to relinquish the ammunition as required by law.
(22)When the property or things to be seized include a firearm or ammunition or both that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms pursuant to Section 527.9 of the Code of Civil Procedure, the person has been lawfully served with that order, and the person has failed to relinquish the firearm or ammunition or both as required by law.
(23)When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.
(b)The property, things, person, or persons described in subdivision (a) may be taken on the warrant from a place or from a person in whose possession the property or things may be.
(c)Notwithstanding subdivision (a) or (b), a search warrant shall not be issued for documentary evidence in the possession or under the control of a person who is a lawyer as defined in Section 950 of the Evidence Code, a physician as defined in Section 990 of the Evidence Code, a psychotherapist as defined in Section 1010 of the Evidence Code, or a member of the clergy as defined in Section 1030 of the Evidence Code, and who is not reasonably suspected of engaging or having engaged in criminal activity related to the documentary evidence for which a warrant is requested unless the following procedure has been complied with:
(1)At the time of the issuance of the warrant, the court shall appoint a special master in accordance with subdivision (d) to accompany the person who will serve the warrant. Upon service of the warrant, the special master shall inform the party served of the specific items being sought and that the party shall have the opportunity to provide the items requested. If the party, in the judgment of the special master, fails to provide the items requested, the special master shall conduct a search for the items in the areas indicated in the search warrant.
(2)(A)If the party who has been served states that an item or items should not be disclosed, they shall be sealed by the special master and taken to court for a hearing.
(B)At the hearing, the party searched shall be entitled to raise an issue that may be raised pursuant to Section 1538.5 as well as a claim that the item or items are privileged, as provided by law. The hearing shall be held in the superior court. The court shall provide sufficient time for the parties to obtain counsel and make motions or present evidence. The hearing shall be held within three days of the service of the warrant unless the court makes a finding that the expedited hearing is impracticable. In that case, the matter shall be heard at the earliest possible time.
(C)If an item or items are taken to court for a hearing, a limitation of time prescribed in Chapter 2 (commencing with Section 799) of Title 3 shall be tolled from the time of the seizure until the final conclusion of the hearing, including an associated writ or appellate proceedings.
(3)The warrant shall, whenever practicable, be served during normal business hours. In addition, the warrant shall be served upon a party who appears to have possession or control of the items sought. If, after reasonable efforts, the party serving the warrant is unable to locate the person, the special master shall seal and return to the court, for determination by the court, an item that appears to be privileged as provided by law.
(d)(1)As used in this section, a special master is an attorney who is a member in good standing of the California State Bar and who has been selected from a list of qualified attorneys that is maintained by the State Bar particularly for the purposes of conducting the searches described in this section. These attorneys shall serve without compensation. A special master shall be considered a public employee, and the governmental entity that caused the search warrant to be issued shall be considered the employer of the special master and the applicable public entity, for purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, relating to claims and actions against public entities and public employees. In selecting the special master, the court shall make every reasonable effort to ensure that the person selected has no relationship with any of the parties involved in the pending matter. Information obtained by the special master shall be confidential and may not be divulged except in direct response to inquiry by the court.
(2)In a case in which the magistrate determines that, after reasonable efforts have been made to obtain a special master, a special master is not available and would not be available within a reasonable period of time, the magistrate may direct the party seeking the order to conduct the search in the manner described in this section in lieu of the special master.
(e)A search conducted pursuant to this section by a special master may be conducted in a manner that permits the party serving the warrant or that partys designee to accompany the special master as the special master conducts the search. However, that party or that partys designee may not participate in the search nor shall they examine any of the items being searched by the special master except upon agreement of the party upon whom the warrant has been served.
(f)As used in this section, documentary evidence includes, but is not limited to, writings, documents, blueprints, drawings, photographs, computer printouts, microfilms, x-rays, files, diagrams, ledgers, books, tapes, audio and video recordings, films, and papers of any type or description.
(g)No warrant shall issue for an item or items described in Section 1070 of the Evidence Code.
(h)No warrant shall issue for an item or items that pertain to an investigation into a prohibited violation, as defined in Section 629.51.
(i)Notwithstanding any other law, no claim of attorney work product as described in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure shall be sustained where there is probable cause to believe that the lawyer is engaging or has engaged in criminal activity related to the documentary evidence for which a warrant is requested unless it is established at the hearing with respect to the documentary evidence seized under the warrant that the services of the lawyer were not sought or obtained to enable or aid anyone to commit or plan to commit a crime or a fraud.
(j)Nothing in this section is intended to limit an attorneys ability to request an in-camera hearing pursuant to the holding of the Supreme Court of California in People v. Superior Court (Laff) (2001) 25 Cal.4th 703.
(k)In addition to any other circumstance permitting a magistrate to issue a warrant for a person or property in another county, when the property or things to be seized consist of any item or constitute evidence that tends to show a violation of Section 530.5, the magistrate may issue a warrant to search a person or property located in another county if the person whose identifying information was taken or used resides in the same county as the issuing court.
(l)This section does not create a cause of action against a foreign or California corporation, its officers, employees, agents, or other specified persons for providing location information.
(m)This section shall become operative on January 1, 2026.
SECTION 1.Section 417.10 of the Code of Civil Procedure is amended to read:417.10.Proof that a summons was served on a person within this state shall be made:(a)If served under Section 415.10, 415.20, or 415.30, by the affidavit of the person making the service showing the time, place, and manner of service and facts showing that the service was made in accordance with this chapter. The affidavit shall recite or in other manner show the name of the person to whom a copy of the summons and of the complaint were delivered, and, if appropriate, their title or the capacity in which they are served, and that the notice required by Section 412.30 appeared on the copy of the summons served, if it appeared.If service is made by mail pursuant to Section 415.30, proof of service shall include the acknowledgment of receipt of the summons in the form provided by that section or other written acknowledgment of receipt of the summons satisfactory to the court.(b)If served by publication pursuant to Section 415.50, by the affidavit of the publisher or printer, or their foreperson or principal clerk, showing the time and place of publication, and an affidavit showing the time and place a copy of the summons and of the complaint were mailed to the party to be served, if it was mailed.(c)If served pursuant to another law of this state, in the manner prescribed by that law or, if no manner is prescribed, in the manner prescribed by this section for proof of a similar manner of service.(d)By the written admission of the party.(e)If served by posting pursuant to Section 415.45, by the affidavit of the person who posted the premises, showing the time and place of posting, and an affidavit showing the time and place copies of the summons and of the complaint were mailed to the party to be served, if it was mailed.(f)All proof of personal service shall be made on a form adopted by the Judicial Council.Proof that a summons was served on a person within this state shall be made:
(a)If served under Section 415.10, 415.20, or 415.30, by the affidavit of the person making the service showing the time, place, and manner of service and facts showing that the service was made in accordance with this chapter. The affidavit shall recite or in other manner show the name of the person to whom a copy of the summons and of the complaint were delivered, and, if appropriate, his or her their title or the capacity in which he or she is they are served, and that the notice required by Section 412.30 appeared on the copy of the summons served, if in fact it did appear. appeared.
If service is made by mail pursuant to Section 415.30, proof of service shall include the acknowledgment of receipt of the summons in the form provided by that section or other written acknowledgment of receipt of the summons satisfactory to the court.
(b)If served by publication pursuant to Section 415.50, by the affidavit of the publisher or printer, or his or her their foreperson or principal clerk, showing the time and place of publication, and an affidavit showing the time and place a copy of the summons and of the complaint were mailed to the party to be served, if in fact it was mailed.
(c)If served pursuant to another law of this state, in the manner prescribed by that law or, if no manner is prescribed, in the manner prescribed by this section for proof of a similar manner of service.
(d)By the written admission of the party.
(e)If served by posting pursuant to Section 415.45, by the affidavit of the person who posted the premises, showing the time and place of posting, and an affidavit showing the time and place copies of the summons and of the complaint were mailed to the party to be served, if in fact it was mailed.
(f)All proof of personal service shall be made on a form adopted by the Judicial Council.
|
Date
|
Status
|
|---|---|
| Mar 2, 2026 | Veto sustained. |
| Mar 2, 2026 | Stricken from file. |
| Oct 11, 2025 | In Senate. Consideration of Governor's veto pending. |
| Oct 11, 2025 | Vetoed by the Governor. |
| Sep 22, 2025 | Enrolled and presented to the Governor at 11 a.m. |
| Sep 11, 2025 | Assembly amendments concurred in. (Ayes 30. Noes 8. Page 2872.) Ordered to engrossing and enrolling. |
| Sep 9, 2025 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 9, 2025 | Read third time. Passed. (Ayes 60. Noes 17. Page 3080.) Ordered to the Senate. |
| Sep 5, 2025 | Read third time and amended. |
| Sep 5, 2025 | Assembly Rule 69(b)(1) suspended. |
| Sep 5, 2025 | Ordered to third reading. |
| Sep 3, 2025 | Read second time. Ordered to third reading. |
| Sep 2, 2025 | Read second time and amended. Ordered to second reading. |
| Aug 29, 2025 | From committee: Do pass as amended. (Ayes 11. Noes 4.) (August 29). |
| Aug 20, 2025 | August 20 set for first hearing. Placed on APPR. suspense file. |
| Jul 17, 2025 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 16, 2025 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 2.) (July 15). |
| Jun 25, 2025 | Read second time and amended. Re-referred to Com. on PUB. S. |
| Jun 24, 2025 | From committee: Do pass as amended and re-refer to Com. on PUB. S. (Ayes 9. Noes 3.) (June 24). |
| Jun 9, 2025 | Referred to Coms. on JUD. and PUB. S. |
| Jun 4, 2025 | In Assembly. Read first time. Held at Desk. |
| Jun 3, 2025 | Read third time. Passed. (Ayes 29. Noes 7. Page 1454.) Ordered to the Assembly. |
| May 27, 2025 | Read second time. Ordered to third reading. |
| May 23, 2025 | Read second time and amended. Ordered to second reading. |
| May 23, 2025 | From committee: Do pass as amended. (Ayes 5. Noes 1. Page 1188.) (May 23). |
| May 16, 2025 | Set for hearing May 23. |
| May 5, 2025 | May 5 hearing: Placed on APPR. suspense file. |
| Apr 25, 2025 | Set for hearing May 5. |
| Apr 23, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 840.) (April 22). Re-referred to Com. on APPR. |
| Apr 10, 2025 | Set for hearing April 22. |
| Apr 9, 2025 | From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 10. Noes 0. Page 704.) (April 8). Re-referred to Com. on PUB. S. |
| Mar 25, 2025 | Set for hearing April 8. |
| Mar 5, 2025 | Re-referred to Coms. on JUD. and PUB. S. |
| Feb 24, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Jan 29, 2025 | Referred to Com. on RLS. |
| Jan 6, 2025 | Read first time. |
| Dec 4, 2024 | From printer. May be acted upon on or after January 3. |
| Dec 3, 2024 | Introduced. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 11, 2025 | Unfinished Business SB36 Umberg et al. Concurrence | Senate Floor |
Passed |
|
| Sep 9, 2025 | SB 36 Umberg Senate Third Reading By Krell | Assembly Floor |
Passed |
|
| Aug 29, 2025 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 15, 2025 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Public Safety |
Passed |
|
| Jun 24, 2025 | Do pass as amended and be re-referred to the Committee on [Public Safety] | Assembly Standing Committee on Judiciary |
Passed |
|
| Jun 3, 2025 | Senate 3rd Reading SB36 Umberg et al. | Senate Floor |
Passed |
|
| May 23, 2025 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 5, 2025 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Public Safety |
Passed |
|
| Apr 8, 2025 | Do pass, but first be re-referred to the Committee on [Public Safety] | Senate Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Business Roundtable | ** Against | |
| California Public Defenders Association (CPDA) | ** Against | |
| California Rural Legal Assistance Foundation, Inc. | ** Support | |
| City Of Los Angeles | ** Support | |
| Consumer Attorneys Of California | ** Support | |
| Consumer Federation Of California | ** Support | |
| Consumer Protection Policy Center/USD School of Law | ** Support | |
| Consumer Watchdog | ** Support | |
| Los Angeles County District Attorney'S Office | ** Support | |
| Techequity Action | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 36 |
VETO
Bill No: SB 36
Author: Umberg (D) and Smallwood-Cuevas (D), et al.
Enrolled: 9/13/25
Vote: 27
SENATE JUDICIARY COMMITTEE: 10-0, 4/8/25
AYES: Umberg, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Wahab, Wiener
NO VOTE RECORDED: Niello, Valladares, Weber Pierson
SENATE PUBLIC SAFETY COMMITTEE: 5-1, 4/22/25
AYES: Arreguín, Caballero, Gonzalez, Pérez, Wiener
NOES: Seyarto
SENATE APPROPRIATIONS COMMITTEE: 5-1, 5/23/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto
NO VOTE RECORDED: Dahle
SENATE FLOOR: 29-7, 6/3/25
AYES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NOES: Alvarado-Gil, Choi, Dahle, Grove, Niello, Seyarto, Strickland
NO VOTE RECORDED: Jones, Ochoa Bogh, Reyes, Valladares
SENATE FLOOR: 30-8, 9/11/25
AYES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NOES: Alvarado-Gil, Choi, Dahle, Grove, Jones, Niello, Seyarto, Strickland
NO VOTE RECORDED: Ochoa Bogh, Valladares
ASSEMBLY FLOOR: 60-17, 9/9/25 - See last page for vote
SUBJECT: Price gouging: state of emergency
SOURCE: Author
DIGEST:
This bill strengthens the laws protecting those affected by wildfires and other emergencies in the state, including from price gouging.
ANALYSIS:
Existing law:
- Establishes the Unfair Competition Law (UCL), which provides a statutory cause of action for any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. (Business and Professions Code (Bus. & Prof. Code) § 17200 et seq.)
- Defines “unfair competition” to mean and include any unlawful, unfair, or fraudulent business act or practice and any unfair, deceptive, untrue, or misleading advertising, and any act prohibited by the False Advertising Law (FAL), (Bus. & Prof. Code § 17200.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. (Bus. & Prof. Code § 17203.)
- Requires actions for relief pursuant to the UCL be prosecuted exclusively in a court of competent jurisdiction and only by the following:
- the Attorney General;
- a district attorney;
- a county counsel authorized by agreement with the district attorney in actions involving violation of a county ordinance;
- a city attorney of a city having a population in excess of 750,000;
- a county counsel of any county within which a city has a population in excess of 750,000;
- a city attorney in a city and county;
- a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association with the consent of the district attorney; or
- a person who has suffered injury in fact and has lost money or property as a result of the unfair competition. (Bus. & Prof. Code § 17204.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty not to exceed $2,500 for each violation. The court shall impose a civil penalty for each violation. In assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (Bus. & Prof. Code § 17206.)
- Establishes the Consumer Legal Remedies Act (CLRA), which prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. (Civil (Civ.) Code § 1750 et seq.)
- Provides that any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 of the Civil Code may bring an action against that person to recover or obtain any of the following:
- actual damages, but in no case shall the total award of damages in a class action be less than $1,000;
- an order enjoining the methods, acts, or practices;
- restitution of property;
- punitive damages;
- court costs and attorney’s fees to a prevailing plaintiff. However, reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith; and
- any other relief that the court deems proper. (Civ. Code § 1780(a), (e).)
- Requires the trier of fact, when an action is brought on behalf of or for the benefit of senior citizens, disabled persons, or veterans (“protected persons”), as those are defined, to redress unfair or deceptive acts or practices or unfair methods of competition, to consider the following factors in addition to other appropriate factors in determining the amount of a fine, civil penalty or other penalty, or other remedy to impose whenever the trier of fact is authorized by statute to impose a fine, penalty, or any other remedy the purpose or effect of which is to punish or deter and the amount of the fine, penalty, or remedy is subject to the trier of fact’s discretion:
- Whether the defendant knew or should have known that their conduct was directed to one or more protected persons.
- Whether the defendant’s conduct caused one or more protected persons to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the protected person.
- Whether one or more protected persons are substantially more vulnerable than other members of the public to the defendant’s conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (Civ. Code § 3345.)
- Authorizes the trier of fact, when it makes an affirmative finding in regard to the specified factors above, to impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding. (Civ. Code § 3345.)
- Provides that upon the declaration of a state of emergency or local emergency resulting from specified crises, including earthquakes, floods, fires, and other disasters, and for a period following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell specified goods and services, such as consumer food items, goods or services used for emergency cleanup, emergency supplies, building materials, housing, gasoline or repair or reconstruction services for a price of more than 10 percent above the price charged immediately prior to the proclamation of emergency. (Penal (Pen.) Code § 396.)
This bill:
- Provides that, in addition to any liability for a civil penalty pursuant to Section 17206, a person who violates the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time of the violation, shall be liable for a civil penalty not to exceed $2,500 for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
- Makes it unlawful pursuant to the CLRA to violate Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
- Adds persons displaced due to a state of emergency or a local emergency, as defined, at the time of any violation to the protected persons eligible for enhanced remedies pursuant to Section 3345.
- Updates Section 396 to explicitly define and prohibit “price gouging” and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
Background
The aftermath of an emergency, such as a natural disaster or other crisis, represents a uniquely vulnerable period for affected communities, characterized by significant emotional, physical, and economic challenges. During these critical moments, victims are particularly susceptible to predatory business practices and fraudulent schemes that can exacerbate their existing hardships.
Survivors often face immediate pressures to secure housing, replace essential goods, and initiate reconstruction efforts, all while managing limited financial resources. Unscrupulous actors frequently exploit this vulnerability through price gouging—dramatically increasing the cost of essential goods and services during emergency periods. Comprehensive legal protections are essential to mitigate these risks and ensure equitable recovery for disaster-impacted populations.
This bill, a part of the Senate’s Golden State Commitment legislative package to strengthen wildfire recovery, bolsters protections for those affected by wildfires and other crises in the state. It does so by reinforcing laws aimed at preventing price gouging and other predatory practices targeting consumers affected by emergencies. It also enlists online housing listing platforms to help root out such practices in the housing stock in the wake of a disaster. The bill is author-sponsored. It is supported by various consumer advocacy groups, including Consumer Watchdog. No timely opposition was received.
Comments
According to the authors:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunists to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
SB 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- Department of Justice (DOJ) and local prosecutors: Workload cost pressures (Unfair Competition Law Fund, General Fund, local funds) to the DOJ and local prosecutors of an unknown but potentially significant amount. If state and local prosecutors file civil enforcement actions as authorized by this bill it will result in a significant workload increase.
- Trial Courts: Unknown, potentially significant cost to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional civil and criminal actions.
- State and Local Law Enforcement Agencies: Workload costs pressures to state and local law enforcement agencies (General Funds, local funds) of an unknown, but potentially significant amount to respond to and investigate alerts about price listings on the housing listing platforms that violate the price gouging statute.
- Local Incarceration and Supervision: Unknown, potentially significant costs (local funds, General Fund) to the counties to incarcerate people for the crimes expanded by this bill.
According to the Assembly Appropriations Committee:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations. DOJ anticipates costs of approximately $1.1 million in fiscal year 2025-26 and $1.8 million annually ongoing for nine additional staff positions: attorneys, special investigators, program analysts, and legal secretaries in its Public Rights Division and Special Prosecutions Section.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
SUPPORT: (Verified 10/15/25)
City of Los Angeles
Consumer Attorneys of California
Consumer Watchdog
TechEquity Action
OPPOSITION: (Verified 10/15/25)
None received
ARGUMENTS IN SUPPORT: Consumer Watchdog writes in support:
While emergency declarations prohibited excessive rent increases in Los Angeles County, dishonest property owners exploited a loophole by listing rental properties at exorbitant rates in neighboring counties such as Orange County, where no emergency had been declared. This practice obstructed enforcement efforts and placed further hardship on displaced families in desperate need of shelter.
Consumer Watchdog supports SB 36 because it strengthens consumer protections by increasing penalties for price gouging and requiring online housing platforms to enforce fair pricing policies, report violations, and provide mechanisms for consumer complaints. It empowers displaced individuals to take legal action, grants courts the authority to award damages, and enhances prosecutorial tools to investigate and address housing-related price gouging. Additionally, it extends protections to counties within a 50-mile radius of an affected area, preventing exploitation in nearby markets.
GOVERNOR'S VETO MESSAGE:
This bill expands price gouging protections following a State of Emergency or Local Emergency declaration, establishes a housing listing program to report and remove listings that violate price gouging, and imposes criminal and civil penalties on violators. This bill would also allow the Legislature to terminate an extension of price gouging limitations via a concurrent resolution.
I appreciate the author's intent to strengthen and expand protections against price gouging for those displaced by a state or local emergency. Unfortunately, this bill includes a provision that would allow the Legislature to terminate extensions of emergency protections by concurrent resolution. This shift would weaken the Governor's authority under the Emergency Services Act and undermine the executive branch's flexibility to respond to rapidly evolving disasters. In times of emergency, Californians expect swift and decisive action to protect public safety, deliver resources, and maintain stability. Making the Governor's actions subject to termination by concurrent vote of the Legislature could delay critical measures and create uncertainty when Californians can least afford it. For that reason, I am unable to sign this bill.
ASSEMBLY FLOOR: 60-17, 9/9/25
AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NOES: Alanis, Castillo, Chen, DeMaio, Dixon, Ellis, Gallagher, Jeff Gonzalez, Hadwick, Hoover, Johnson, Lackey, Macedo, Patterson, Sanchez, Ta, Tangipa
NO VOTE RECORDED: Davies, Flora, Wallis
Prepared by: Christian Kurpiewski / JUD. / (916) 651-4113
10/15/25 14:51:31
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 36 |
UNFINISHED BUSINESS
Bill No: SB 36
Author: Umberg (D) and Smallwood-Cuevas (D), et al.
Amended: 9/5/25 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE: 10-0, 4/8/25
AYES: Umberg, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Wahab, Wiener
NO VOTE RECORDED: Niello, Valladares, Weber Pierson
SENATE PUBLIC SAFETY COMMITTEE: 5-1, 4/22/25
AYES: Arreguín, Caballero, Gonzalez, Pérez, Wiener
NOES: Seyarto
SENATE APPROPRIATIONS COMMITTEE: 5-1, 5/23/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto
NO VOTE RECORDED: Dahle
SENATE FLOOR: 29-7, 6/3/25
AYES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NOES: Alvarado-Gil, Choi, Dahle, Grove, Niello, Seyarto, Strickland
NO VOTE RECORDED: Jones, Ochoa Bogh, Reyes, Valladares
ASSEMBLY FLOOR: 43-14, 9/9/25 – Roll call not available.
SUBJECT: Price gouging: state of emergency
SOURCE: Author
DIGEST:
This bill strengthens the laws protecting those affected by wildfires and other emergencies in the state, including from price gouging.
Assembly Amendments
of 9/5/25 remove provisions regarding search warrants and the areas to which price gouging laws extend and provide additional clarifying amendments.
ANALYSIS:
Existing law:
- Establishes the Unfair Competition Law (UCL), which provides a statutory cause of action for any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. (Business and Professions Code (Bus. & Prof. Code) § 17200 et seq.)
- Defines “unfair competition” to mean and include any unlawful, unfair, or fraudulent business act or practice and any unfair, deceptive, untrue, or misleading advertising, and any act prohibited by the False Advertising Law (FAL), (Bus. & Prof. Code § 17200.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. (Bus. & Prof. Code § 17203.)
- Requires actions for relief pursuant to the UCL be prosecuted exclusively in a court of competent jurisdiction and only by the following:
- the Attorney General;
- a district attorney;
- a county counsel authorized by agreement with the district attorney in actions involving violation of a county ordinance;
- a city attorney of a city having a population in excess of 750,000;
- a county counsel of any county within which a city has a population in excess of 750,000;
- a city attorney in a city and county;
- a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association with the consent of the district attorney; or
- a person who has suffered injury in fact and has lost money or property as a result of the unfair competition. (Bus. & Prof. Code § 17204.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty not to exceed $2,500 for each violation. The court shall impose a civil penalty for each violation. In assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (Bus. & Prof. Code § 17206.)
- Establishes the Consumer Legal Remedies Act (CLRA), which prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. (Civil (Civ.) Code § 1750 et seq.)
- Provides that any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 of the Civil Code may bring an action against that person to recover or obtain any of the following:
- actual damages, but in no case shall the total award of damages in a class action be less than $1,000;
- an order enjoining the methods, acts, or practices;
- restitution of property;
- punitive damages;
- court costs and attorney’s fees to a prevailing plaintiff. However, reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith; and
- any other relief that the court deems proper. (Civ. Code § 1780(a), (e).)
- Requires the trier of fact, when an action is brought on behalf of or for the benefit of senior citizens, disabled persons, or veterans (“protected persons”), as those are defined, to redress unfair or deceptive acts or practices or unfair methods of competition, to consider the following factors in addition to other appropriate factors in determining the amount of a fine, civil penalty or other penalty, or other remedy to impose whenever the trier of fact is authorized by statute to impose a fine, penalty, or any other remedy the purpose or effect of which is to punish or deter and the amount of the fine, penalty, or remedy is subject to the trier of fact’s discretion:
- Whether the defendant knew or should have known that their conduct was directed to one or more protected persons.
- Whether the defendant’s conduct caused one or more protected persons to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the protected person.
- Whether one or more protected persons are substantially more vulnerable than other members of the public to the defendant’s conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (Civ. Code § 3345.)
- Authorizes the trier of fact, when it makes an affirmative finding in regard to the specified factors above, to impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding. (Civ. Code § 3345.)
- Provides that upon the declaration of a state of emergency or local emergency resulting from specified crises, including earthquakes, floods, fires, and other disasters, and for a period following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell specified goods and services, such as consumer food items, goods or services used for emergency cleanup, emergency supplies, building materials, housing, gasoline or repair or reconstruction services for a price of more than 10 percent above the price charged immediately prior to the proclamation of emergency. (Penal (Pen.) Code § 396.)
This bill:
- Provides that, in addition to any liability for a civil penalty pursuant to Section 17206, a person who violates the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time of the violation, shall be liable for a civil penalty not to exceed $2,500 for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
- Makes it unlawful pursuant to the CLRA to violate Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
- Adds persons displaced due to a state of emergency or a local emergency, as defined, at the time of any violation to the protected persons eligible for enhanced remedies pursuant to Section 3345.
- Updates Section 396 to explicitly define and prohibit “price gouging” and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
Background
The aftermath of an emergency, such as a natural disaster or other crisis, represents a uniquely vulnerable period for affected communities, characterized by significant emotional, physical, and economic challenges. During these critical moments, victims are particularly susceptible to predatory business practices and fraudulent schemes that can exacerbate their existing hardships.
Survivors often face immediate pressures to secure housing, replace essential goods, and initiate reconstruction efforts, all while managing limited financial resources. Unscrupulous actors frequently exploit this vulnerability through price gouging—dramatically increasing the cost of essential goods and services during emergency periods. Comprehensive legal protections are essential to mitigate these risks and ensure equitable recovery for disaster-impacted populations.
This bill, a part of the Senate’s Golden State Commitment legislative package to strengthen wildfire recovery, bolsters protections for those affected by wildfires and other crises in the state. It does so by reinforcing laws aimed at preventing price gouging and other predatory practices targeting consumers affected by emergencies. It also enlists online housing listing platforms to help root out such practices in the housing stock in the wake of a disaster. The bill is author-sponsored. It is supported by various consumer advocacy groups, including Consumer Watchdog. No timely opposition was received.
Comments
According to the authors:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunists to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
SB 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- Department of Justice (DOJ) and local prosecutors: Workload cost pressures (Unfair Competition Law Fund, General Fund, local funds) to the DOJ and local prosecutors of an unknown but potentially significant amount. If state and local prosecutors file civil enforcement actions as authorized by this bill it will result in a significant workload increase.
- Trial Courts: Unknown, potentially significant cost to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional civil and criminal actions.
- State and Local Law Enforcement Agencies: Workload costs pressures to state and local law enforcement agencies (General Funds, local funds) of an unknown, but potentially significant amount to respond to and investigate alerts about price listings on the housing listing platforms that violate the price gouging statute.
- Local Incarceration and Supervision: Unknown, potentially significant costs (local funds, General Fund) to the counties to incarcerate people for the crimes expanded by this bill.
According to the Assembly Appropriations Committee:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations. DOJ anticipates costs of approximately $1.1 million in fiscal year 2025-26 and $1.8 million annually ongoing for nine additional staff positions: attorneys, special investigators, program analysts, and legal secretaries in its Public Rights Division and Special Prosecutions Section.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
City of Los Angeles
Consumer Attorneys of California
Consumer Watchdog
TechEquity Action
OPPOSITION: (Verified 9/9/25)
None received
ARGUMENTS IN SUPPORT: Consumer Watchdog writes in support:
While emergency declarations prohibited excessive rent increases in Los Angeles County, dishonest property owners exploited a loophole by listing rental properties at exorbitant rates in neighboring counties such as Orange County, where no emergency had been declared. This practice obstructed enforcement efforts and placed further hardship on displaced families in desperate need of shelter.
Consumer Watchdog supports SB 36 because it strengthens consumer protections by increasing penalties for price gouging and requiring online housing platforms to enforce fair pricing policies, report violations, and provide mechanisms for consumer complaints. It empowers displaced individuals to take legal action, grants courts the authority to award damages, and enhances prosecutorial tools to investigate and address housing-related price gouging. Additionally, it extends protections to counties within a 50-mile radius of an affected area, preventing exploitation in nearby markets.
Prepared by: Christian Kurpiewski / JUD. / (916) 651-4113
9/9/25 15:03:34
**** END ****
SENATE THIRD READING
STR Bill Id:SB 36
Author:(Umberg and Smallwood-Cuevas)
As Amended Ver:September 5, 2025
Majority vote
SUMMARY
Strengthens consumer protections against price gouging during states of emergency by enhancing civil remedies under the Unfair Competition Law and Consumer Legal Remedies Act, extending protections to displaced persons, imposing obligations on housing listing platforms, and expanding investigatory tools for enforcement.
Major Provisions
- Provides that, in addition to any liability for a civil penalty imposed for violating the Unfair Competition Law (UCL), a person is liable for a civil penalty of up to $2,500 if they committed the act of unfair competition against someone displaced due to a state of emergency or local emergency at the time the violation occurred.
- Establishes that is unlawful under the Consumer Legal Remedies Act (CLRA) to engage in price gouging, as provided, thereby granting affected consumers a private right of action.
- Enables persons displaced due to a state of emergency or a local emergency to collect enhanced penalties when redressing unfair or deceptive acts or practices or unfair methods of competition.
- Defines and prohibits ″price gouging″ and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- Enhances the penalties for violating the price gouging statute by including imprisonment in a county jail for 16 months, or two or three years, as provided.
- Removes the one-year lease term limit from the definition of "housing" in the price gouging bill.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a ″housing listing platform″ as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
COMMENTS
When wildfires and other natural disasters displace Californians from their homes, many face not only the trauma of evacuation and loss, but potential exploitation in the rental housing market. Despite California′s longstanding ban on price gouging during declared emergencies (Penal Code Section 396), landlords and short-term rental operators across Los Angeles County repeatedly and flagrantly violated this law in the aftermath of the January 2025 wildfires, targeting evacuees with predatory rent hikes that far exceed legal limits.
Following the devastating Palisades and Eaton fires, public reports and investigations revealed hundreds of rental listings—especially on platforms like Zillow and Craigslist—advertising homes at inflated prices up to 124% above pre-emergency rates, often within hours of evacuation orders being issued. Even after the Governor′s emergency proclamation activated price gouging protections under Penal Code Section 396, enforcement has been sporadic and largely reactive. According to supporters, despite clear documentation of violations, only a handful of cases have resulted in investigations, in part because of the lack of proactive enforcement tools and the difficulty of gathering admissible evidence. Meanwhile, renters without insurance—many from working-class or immigrant neighborhoods—have been left with few alternatives and little recourse.
Existing law. California law prohibits a variety of unfair and deceptive practices in consumer transactions, including price gouging during declared emergencies. Penal Code Section 396 makes it a misdemeanor to raise the price of essential goods and services—including housing, gasoline, emergency supplies, hotel accommodations, and reconstruction services—by more than 10 percent following the proclamation of a state or local emergency, unless the price increase is justified by additional costs. These protections generally apply for 30 days (or longer for certain services), and may be extended by state or local authorities. Violations are enforceable both criminally and civilly and are considered an ″unlawful business practice″ under Business and Professions Code Section 17200, which permits enforcement by public prosecutors and, in limited circumstances, private plaintiffs seeking restitution or injunctive relief.
Separately, the Consumers Legal Remedies Act (CLRA) prohibits enumerated unfair or deceptive acts in transactions involving the sale or lease of goods or services to consumers. Under Civil Code Section 1780, a consumer may bring a private action for damages, restitution, injunctive relief, and, in certain cases, punitive damages. However, prior to this bill, violations of California′s anti–price gouging law were not explicitly included in the list of deceptive practices under the CLRA. Similarly, Civil Code Section 3345 authorizes a trier of fact to enhance penalties in actions brought for the benefit of senior citizens, disabled persons, and veterans—but not individuals displaced by an emergency—even when those individuals are uniquely vulnerable to economic exploitation.
This bill strengthens California′s emergency consumer protection laws by creating a comprehensive civil enforcement framework for price gouging and imposes certain obligations on housing listing platforms, among other things.
First, the bill amends Civil Code Section 1770 to add a new subdivision (a)(30), which designates a violation of Penal Code Section 396—including illegal rental price increases or evictions followed by gouging—as an unlawful act under the CLRA. This change grants displaced tenants and other affected consumers a private right of action with access to CLRA remedies, including compensatory and punitive damages, attorney′s fees, and injunctive relief.
Second, the bill amends Civil Code Section 3345 to expand enhanced penalty protections for unfair or deceptive acts to include ″persons displaced due to a state of emergency or local emergency at the time the violation occurred.″ As a result, if a displaced person brings or benefits from an action to redress price gouging or unfair practices—whether under the CLRA, UCL, or another statute—a court may consider their vulnerability and increase any discretionary civil penalty, fine, or deterrent remedy by up to three times the statutory amount. This amendment recognizes that displaced persons, like seniors or disabled individuals, are especially susceptible to predatory conduct in the aftermath of a disaster, particularly with respect to emergency housing, goods, and services.
Third, the bill adds new Business and Professions Code Section 17206.3 to authorize enhanced civil penalties in actions brought by public prosecutors under the UCL for price gouging violations targeting displaced persons. Specifically, if a person violates the UCL and the conduct is directed at or harms a person displaced by an emergency, the court may impose a penalty of up to $2,500 per violation, in addition to the standard penalties under Section 17206.
Together, these amendments to existing law reinforce the state′s price gouging protections by ensuring individual consumers have a private right of action for price-gouging under the CLRA, providing trebled penalties where vulnerable displaced persons suffer economic harm, and authorizing enhanced civil penalties under the UCL when public enforcement actions target emergency-related exploitation.
Fourth, the bill imposes affirmative duties on online housing listing platforms during the initial 30 days following an emergency declaration. Specifically, platforms must:
- Remove listings flagged by law enforcement as violating Penal Code Section 396;
- Maintain and publicly post policies informing housing providers and consumers of the law′s requirements and consequences;
- Provide tools for users to report suspected violations and for law enforcement to submit requests and legal process;
- Maintain internal records and procedures to comply with these duties.
These provisions ensure that digital intermediaries—many of whom have played a central role in the post-disaster rental marketplace—cannot ignore illegal conduct facilitated by their platforms.
Finally, the bill amends Penal Code Section 396 to make a violation of the price gouging statute punishable as either a misdemeanor or felony.
According to the Author
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
Sb 36 ensures that disaster victims are not further victimized by financial exploitation. SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
Arguments in Support
The Consumer Attorneys of California explain their support of this measure:
The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
- Increases civil penalties for those who take advantage of displaced victims;
- Allows victims to bring their own legal actions and seek additional damages;
- Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
- Grants public prosecutors warrant authority to investigate housing-related price gouging;
- Expands price gouging protections to include counties within a 50-mile radius of the affected area.
These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.
Arguments in Opposition
The California Business Roundtable opposes this measure:
While we share the author's concern for protecting displaced Californians from unscrupulous actors during times of crisis, SB 36 overreaches in ways that will create unintended consequences for legitimate businesses, particularly in the commercial property sector, and will have a chilling effect on investment, risk management, and property transactions throughout the state.
…
While the bill's goal to protect vulnerable residents is laudable, SB 36's sweeping expansion of liability, geographic scope, and private enforcement will have broad and harmful implications across the commercial property sector and California's business climate more broadly.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations of price gouging and complete the required report about search warrants, possibly in the low millions of dollars annually depending on the level of additional staffing needed.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
VOTES
SENATE FLOOR: 29-7-4
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Niello, Seyarto, Strickland
ABS, ABST OR NV: Jones, Ochoa Bogh, Reyes, Valladares
ASM JUDICIARY: 9-3-0
YES: Kalra, Garcia, Bryan, Connolly, Harabedian, Pacheco, Papan, Lee, Zbur
NO: Dixon, Tangipa, Sanchez
ASM PUBLIC SAFETY: 7-2-0
YES: Schultz, Mark González, Haney, Harabedian, Nguyen, Ramos, Sharp-Collins
NO: Alanis, Lackey
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache
NO: Sanchez, Dixon, Ta, Tangipa
UPDATED
VERSION: September 5, 2025
CONSULTANT: Shiran Zohar / JUD. / (916) 319-2334 FN: 0001748
SENATE THIRD READING
STR Bill Id:SB 36
Author:(Umberg and Smallwood-Cuevas)
As Amended Ver:September 5, 2025
Majority vote
SUMMARY
Strengthens consumer protections against price gouging during states of emergency by enhancing civil remedies under the Unfair Competition Law and Consumer Legal Remedies Act, extending protections to displaced persons, imposing obligations on housing listing platforms, and expanding investigatory tools for enforcement.
Major Provisions
- Provides that, in addition to any liability for a civil penalty imposed for violating the Unfair Competition Law (UCL), a person is liable for a civil penalty of up to $2,500 if they committed the act of unfair competition against someone displaced due to a state of emergency or local emergency at the time the violation occurred.
- Establishes that is unlawful under the Consumer Legal Remedies Act (CLRA) to engage in price gouging, as provided, thereby granting affected consumers a private right of action.
- Enables persons displaced due to a state of emergency or a local emergency to collect enhanced penalties when redressing unfair or deceptive acts or practices or unfair methods of competition.
- Defines and prohibits ″price gouging″ and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- Removes the one-year lease term limit from the definition of "housing" in the price gouging bill.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a ″housing listing platform″ as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
COMMENTS
When wildfires and other natural disasters displace Californians from their homes, many face not only the trauma of evacuation and loss, but potential exploitation in the rental housing market. Despite California′s longstanding ban on price gouging during declared emergencies (Penal Code Section 396), landlords and short-term rental operators across Los Angeles County repeatedly and flagrantly violated this law in the aftermath of the January 2025 wildfires, targeting evacuees with predatory rent hikes that far exceed legal limits.
Following the devastating Palisades and Eaton fires, public reports and investigations revealed hundreds of rental listings—especially on platforms like Zillow and Craigslist—advertising homes at inflated prices up to 124% above pre-emergency rates, often within hours of evacuation orders being issued. Even after the Governor′s emergency proclamation activated price gouging protections under Penal Code Section 396, enforcement has been sporadic and largely reactive. According to supporters, despite clear documentation of violations, only a handful of cases have resulted in investigations, in part because of the lack of proactive enforcement tools and the difficulty of gathering admissible evidence. Meanwhile, renters without insurance—many from working-class or immigrant neighborhoods—have been left with few alternatives and little recourse.
Existing law. California law prohibits a variety of unfair and deceptive practices in consumer transactions, including price gouging during declared emergencies. Penal Code Section 396 makes it a misdemeanor to raise the price of essential goods and services—including housing, gasoline, emergency supplies, hotel accommodations, and reconstruction services—by more than 10 percent following the proclamation of a state or local emergency, unless the price increase is justified by additional costs. These protections generally apply for 30 days (or longer for certain services), and may be extended by state or local authorities. Violations are enforceable both criminally and civilly and are considered an ″unlawful business practice″ under Business and Professions Code Section 17200, which permits enforcement by public prosecutors and, in limited circumstances, private plaintiffs seeking restitution or injunctive relief.
Separately, the Consumers Legal Remedies Act (CLRA) prohibits enumerated unfair or deceptive acts in transactions involving the sale or lease of goods or services to consumers. Under Civil Code Section 1780, a consumer may bring a private action for damages, restitution, injunctive relief, and, in certain cases, punitive damages. However, prior to this bill, violations of California′s anti–price gouging law were not explicitly included in the list of deceptive practices under the CLRA. Similarly, Civil Code Section 3345 authorizes a trier of fact to enhance penalties in actions brought for the benefit of senior citizens, disabled persons, and veterans—but not individuals displaced by an emergency—even when those individuals are uniquely vulnerable to economic exploitation.
This bill strengthens California′s emergency consumer protection laws by creating a comprehensive civil enforcement framework for price gouging and imposes certain obligations on housing listing platforms, among other things.
First, the bill amends Civil Code Section 1770 to add a new subdivision (a)(30), which designates a violation of Penal Code Section 396—including illegal rental price increases or evictions followed by gouging—as an unlawful act under the CLRA. This change grants displaced tenants and other affected consumers a private right of action with access to CLRA remedies, including compensatory and punitive damages, attorney′s fees, and injunctive relief.
Second, the bill amends Civil Code Section 3345 to expand enhanced penalty protections for unfair or deceptive acts to include ″persons displaced due to a state of emergency or local emergency at the time the violation occurred.″ As a result, if a displaced person brings or benefits from an action to redress price gouging or unfair practices—whether under the CLRA, UCL, or another statute—a court may consider their vulnerability and increase any discretionary civil penalty, fine, or deterrent remedy by up to three times the statutory amount. This amendment recognizes that displaced persons, like seniors or disabled individuals, are especially susceptible to predatory conduct in the aftermath of a disaster, particularly with respect to emergency housing, goods, and services.
Third, the bill adds new Business and Professions Code Section 17206.3 to authorize enhanced civil penalties in actions brought by public prosecutors under the UCL for price gouging violations targeting displaced persons. Specifically, if a person violates the UCL and the conduct is directed at or harms a person displaced by an emergency, the court may impose a penalty of up to $2,500 per violation, in addition to the standard penalties under Section 17206.
Together, these amendments to existing law reinforce the state′s price gouging protections by ensuring individual consumers have a private right of action for price-gouging under the CLRA, providing trebled penalties where vulnerable displaced persons suffer economic harm, and authorizing enhanced civil penalties under the UCL when public enforcement actions target emergency-related exploitation.
Fourth, the bill imposes affirmative duties on online housing listing platforms during the initial 30 days following an emergency declaration. Specifically, platforms must:
- Remove listings flagged by law enforcement as violating Penal Code Section 396;
- Maintain and publicly post policies informing housing providers and consumers of the law′s requirements and consequences;
- Provide tools for users to report suspected violations and for law enforcement to submit requests and legal process;
- Maintain internal records and procedures to comply with these duties.
These provisions ensure that digital intermediaries—many of whom have played a central role in the post-disaster rental marketplace—cannot ignore illegal conduct facilitated by their platforms.
Finally, the bill amends Penal Code Section 396 to define "price gouging."
According to the Author
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
Sb 36 ensures that disaster victims are not further victimized by financial exploitation. SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
Arguments in Support
The Consumer Attorneys of California explain their support of this measure:
The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
- Increases civil penalties for those who take advantage of displaced victims;
- Allows victims to bring their own legal actions and seek additional damages;
- Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
- Grants public prosecutors warrant authority to investigate housing-related price gouging;
- Expands price gouging protections to include counties within a 50-mile radius of the affected area.
These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.
Arguments in Opposition
The California Business Roundtable opposes this measure:
While we share the author's concern for protecting displaced Californians from unscrupulous actors during times of crisis, SB 36 overreaches in ways that will create unintended consequences for legitimate businesses, particularly in the commercial property sector, and will have a chilling effect on investment, risk management, and property transactions throughout the state.
…
While the bill's goal to protect vulnerable residents is laudable, SB 36's sweeping expansion of liability, geographic scope, and private enforcement will have broad and harmful implications across the commercial property sector and California's business climate more broadly.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations of price gouging and complete the required report about search warrants, possibly in the low millions of dollars annually depending on the level of additional staffing needed.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
VOTES
SENATE FLOOR: 29-7-4
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Niello, Seyarto, Strickland
ABS, ABST OR NV: Jones, Ochoa Bogh, Reyes, Valladares
ASM JUDICIARY: 9-3-0
YES: Kalra, Garcia, Bryan, Connolly, Harabedian, Pacheco, Papan, Lee, Zbur
NO: Dixon, Tangipa, Sanchez
ASM PUBLIC SAFETY: 7-2-0
YES: Schultz, Mark González, Haney, Harabedian, Nguyen, Ramos, Sharp-Collins
NO: Alanis, Lackey
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache
NO: Sanchez, Dixon, Ta, Tangipa
UPDATED
VERSION: September 5, 2025
CONSULTANT: Shiran Zohar / JUD. / (916) 319-2334 FN: 0001778
SENATE THIRD READING
STR Bill Id:SB 36
Author:(Umberg and Smallwood-Cuevas)
As Amended Ver:August 29, 2025
Majority vote
SUMMARY
Strengthens consumer protections against price gouging during states of emergency by enhancing civil remedies under the Unfair Competition Law and Consumer Legal Remedies Act, extending protections to displaced persons, imposing obligations on housing listing platforms, and expanding investigatory tools for enforcement.
Major Provisions
- Provides that, in addition to any liability for a civil penalty imposed for violating the Unfair Competition Law (UCL), a person is liable for a civil penalty of up to $2,500 if they committed the act of unfair competition against someone displaced due to a state of emergency or local emergency at the time the violation occurred.
- Establishes that is unlawful under the Consumer Legal Remedies Act (CLRA) to engage in price gouging, as provided, thereby granting affected consumers a private right of action.
- Enables persons displaced due to a state of emergency or a local emergency to collect enhanced penalties when redressing unfair or deceptive acts or practices or unfair methods of competition.
- Defines and prohibits ″price gouging″ and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a ″housing listing platform″ as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
- Establishes that until January 1, 2031, a search warrant may be issued, only upon application by the Department of Justice, when the property or things to be seized consist of evidence that tends to show that a price gouging violation, as provided, has occurred or is occurring.
- Provides that the Department of Justice must prepare and submit a report to the Legislature on or before January 1, 2030, detailing the number of search warrants issued pursuant to 8); and the number of price gouging violations, as provided, among other things.
COMMENTS
When wildfires and other natural disasters displace Californians from their homes, many face not only the trauma of evacuation and loss, but potential exploitation in the rental housing market. Despite California′s longstanding ban on price gouging during declared emergencies (Penal Code Section 396), landlords and short-term rental operators across Los Angeles County repeatedly and flagrantly violated this law in the aftermath of the January 2025 wildfires, targeting evacuees with predatory rent hikes that far exceed legal limits.
Following the devastating Palisades and Eaton fires, public reports and investigations revealed hundreds of rental listings—especially on platforms like Zillow and Craigslist—advertising homes at inflated prices up to 124% above pre-emergency rates, often within hours of evacuation orders being issued. Even after the Governor′s emergency proclamation activated price gouging protections under Penal Code Section 396, enforcement has been sporadic and largely reactive. According to supporters, despite clear documentation of violations, only a handful of cases have resulted in investigations, in part because of the lack of proactive enforcement tools and the difficulty of gathering admissible evidence. Meanwhile, renters without insurance—many from working-class or immigrant neighborhoods—have been left with few alternatives and little recourse.
Existing law. California law prohibits a variety of unfair and deceptive practices in consumer transactions, including price gouging during declared emergencies. Penal Code Section 396 makes it a misdemeanor to raise the price of essential goods and services—including housing, gasoline, emergency supplies, hotel accommodations, and reconstruction services—by more than 10 percent following the proclamation of a state or local emergency, unless the price increase is justified by additional costs. These protections generally apply for 30 days (or longer for certain services), and may be extended by state or local authorities. Violations are enforceable both criminally and civilly and are considered an ″unlawful business practice″ under Business and Professions Code Section 17200, which permits enforcement by public prosecutors and, in limited circumstances, private plaintiffs seeking restitution or injunctive relief.
Separately, the Consumers Legal Remedies Act (CLRA) prohibits enumerated unfair or deceptive acts in transactions involving the sale or lease of goods or services to consumers. Under Civil Code Section 1780, a consumer may bring a private action for damages, restitution, injunctive relief, and, in certain cases, punitive damages. However, prior to this bill, violations of California′s anti–price gouging law were not explicitly included in the list of deceptive practices under the CLRA. Similarly, Civil Code Section 3345 authorizes a trier of fact to enhance penalties in actions brought for the benefit of senior citizens, disabled persons, and veterans—but not individuals displaced by an emergency—even when those individuals are uniquely vulnerable to economic exploitation.
This bill strengthens California′s emergency consumer protection laws by creating a comprehensive civil enforcement framework for price gouging and imposes certain obligations on housing listing platforms, among other things.
First, the bill amends Civil Code Section 1770 to add a new subdivision (a)(30), which designates a violation of Penal Code Section 396—including illegal rental price increases or evictions followed by gouging—as an unlawful act under the CLRA. This change grants displaced tenants and other affected consumers a private right of action with access to CLRA remedies, including compensatory and punitive damages, attorney′s fees, and injunctive relief.
Second, the bill amends Civil Code Section 3345 to expand enhanced penalty protections for unfair or deceptive acts to include ″persons displaced due to a state of emergency or local emergency at the time the violation occurred.″ As a result, if a displaced person brings or benefits from an action to redress price gouging or unfair practices—whether under the CLRA, UCL, or another statute—a court may consider their vulnerability and increase any discretionary civil penalty, fine, or deterrent remedy by up to three times the statutory amount. This amendment recognizes that displaced persons, like seniors or disabled individuals, are especially susceptible to predatory conduct in the aftermath of a disaster, particularly with respect to emergency housing, goods, and services.
Third, the bill adds new Business and Professions Code Section 17206.3 to authorize enhanced civil penalties in actions brought by public prosecutors under the UCL for price gouging violations targeting displaced persons. Specifically, if a person violates the UCL and the conduct is directed at or harms a person displaced by an emergency, the court may impose a penalty of up to $2,500 per violation, in addition to the standard penalties under Section 17206.
Together, these amendments to existing law reinforce the state′s price gouging protections by ensuring individual consumers have a private right of action for price-gouging under the CLRA, providing trebled penalties where vulnerable displaced persons suffer economic harm, and authorizing enhanced civil penalties under the UCL when public enforcement actions target emergency-related exploitation.
Fourth, the bill imposes affirmative duties on online housing listing platforms during the initial 30 days following an emergency declaration. Specifically, platforms must:
- Remove listings flagged by law enforcement as violating Penal Code Section 396;
- Maintain and publicly post policies informing housing providers and consumers of the law′s requirements and consequences;
- Provide tools for users to report suspected violations and for law enforcement to submit requests and legal process;
- Maintain internal records and procedures to comply with these duties.
These provisions ensure that digital intermediaries—many of whom have played a central role in the post-disaster rental marketplace—cannot ignore illegal conduct facilitated by their platforms.
Finally, the bill amends Penal Code Section 396 and 1524. Penal Code Section 1524 adds a new subdivision (a)(23), expressly authorizing the issuance of search warrants where there is probable cause to believe that evidence of a price gouging violation. The bill also makes key changes to Section 396, the existing price gouging law. Specifically, the bill expressly defines ″price gouging″ as the unlawful conduct of charging higher or greater prices, as specified.
According to the Author
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
Sb 36 ensures that disaster victims are not further victimized by financial exploitation. SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
Arguments in Support
The Consumer Attorneys of California explain their support of this measure:
The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
- Increases civil penalties for those who take advantage of displaced victims;
- Allows victims to bring their own legal actions and seek additional damages;
- Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
- Grants public prosecutors warrant authority to investigate housing-related price gouging;
- Expands price gouging protections to include counties within a 50-mile radius of the affected area.
These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.
Arguments in Opposition
The California Public Defenders Association (CPDA), opposes this measure unless it is amended to delete the provision that expands the liability to obtain a search warrant for a misdemeanor crime. CPDA explains its opposition to this specific provision:
Essentially, this bill deals with price gouging during a state of emergency. Under existing law price gouging may be punished with a civil fine or, pursuant to Penal Code section 396, a misdemeanor.
The portion of the bill we object to is new subdivision (23) of Penal Code section 1524, which covers the issuance of search warrants. Subdivision 23 would be added to allow the issuance of a search warrant ″When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.″
As of 1991, Penal Code section 1524 was a relatively focused section authorizing the issuance of search warrant in only 5 instances. Those five instances, however, were very broad, covering all stolen or embezzled property, all felonies, child pornography, as well as a provision broadly allowing warrants to issue for evidence of property that is the means of committing a ″public offense.″
Penal Code section 1524 has wildly expanded and now has 21 subdivisions describing when search warrants may issue. This bill adds yet one more. This continued expansion is concerning.
The current bill may prove to be unnecessary. Although price gouging is a misdemeanor, it may well be that a bad actor does not limit this type of theft to misdemeanor values, but instead ventures into felony grand theft territory. Under current law, a search warrant may issue for evidence relating to a felony.
The California Business Roundtable opposes this measure, arguing that is an overreach that will create unintended consequences for legitimate businesses and will have a chilling effect on business in the state:
California already maintains some of the most stringent price gouging statutes in the country with clear caps and enforcement tools that cover a wide range of goods and services. SB 36 would fundamentally alter the legal landscape by layering new civil liabilities, expanding private rights of action and trebling penalties. In addition, the bill′s expansion of price gouging restrictions to all counties adjacent to a county with a declared state of emergency and those within a 50-mile radius creates significant uncertainty for businesses. Commercial property owners, brokers, and management firms may be subjected to rapidly shifting legal obligations based on events occurring far away despite having no direct nexus to the emergency itself. This introduces substantial risk for commercial leasing transactions and long-term property planning, especially for owners who may need to make lawful rent adjustments based on market conditions, cost escalations, or operational necessity.
The addition of private rights of action is also concerning as it will create an opportunity for opportunistic litigation. The ability for private parties to seek compensatory and punitive damages, attorneys′ fees, and injunctive relief without clear standards for intent or bad faith will increase litigation costs, foster uncertainty, and discourage much-needed investment in California.
While the bill′s goal to protect vulnerable residents is laudable, SB 36′s sweeping expansion of liability, geographic scope, and private enforcement will have broad and harmful implications across the commercial property sector and California′s business climate more broadly.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations of price gouging and complete the required report about search warrants, possibly in the low millions of dollars annually depending on the level of additional staffing needed.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
VOTES
SENATE FLOOR: 29-7-4
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Niello, Seyarto, Strickland
ABS, ABST OR NV: Jones, Ochoa Bogh, Reyes, Valladares
ASM JUDICIARY: 9-3-0
YES: Kalra, Garcia, Bryan, Connolly, Harabedian, Pacheco, Papan, Lee, Zbur
NO: Dixon, Tangipa, Sanchez
ASM PUBLIC SAFETY: 7-2-0
YES: Schultz, Mark González, Haney, Harabedian, Nguyen, Ramos, Sharp-Collins
NO: Alanis, Lackey
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache
NO: Sanchez, Dixon, Ta, Tangipa
UPDATED
VERSION: August 29, 2025
CONSULTANT: Shiran Zohar / JUD. / (916) 319-2334 FN: 0001394
Date of Hearing: August 20, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 36
Author:(Umberg) – As Amended Ver:July 17, 2025
Policy Committee: | Judiciary | Vote: | 9 - 3 |
Public Safety | 7 - 2 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill expands the geographic location in which criminal prohibitions on price gouging after an emergency apply, expands civil penalties for price gouging for specified displaced people, and imposes requirements related to price gouging on online housing listing platforms.
Specifically, among other provisions, this bill:
- Modifies the crime of price gouging during a state of emergency, including by expanding the restrictions on hotel and motel price increases, rental price increases, and evictions of tenants of residential housing to all counties in the proclamation or declaration of emergency and all counties within a 25-mile radius of the counties in the declared emergency.
- Establishes that a court may issue a search warrant when the property or things to be seized consist of evidence that tends to show that a price gouging violation, as provided, has occurred or is occurring.
- Authorizes an additional civil penalty for a violation of the Unfair Competition Law (UCL) if the violation is perpetrated against a person who was displaced due to a state of emergency or local emergency at the time of the violation.
- Makes a violation of specified criminal prohibitions against price gouging enforceable as a violation of the Consumer Legal Remedies Act (CLRA).
- Authorizes a court to impose higher civil penalties or fines in a case brought under the UCL, CLRA, or other unfair practices statute if the prevailing plaintiff was displaced due to a state of emergency or local emergency at the time of the violation.
- Imposes requirements on housing listing platforms to, among other things, remove listings that violate price gouging statutes when notified by law enforcement, establish and maintain price gouging policies that apply to housing providers and consumers, and provide mechanisms through which a consumer or law enforcement agency may submit information about price gouging violations to the platform.
FISCAL EFFECT:
- Costs (General Fund, UCL Fund) to the Department of Justice (DOJ) to investigate and prosecute violations. DOJ anticipates costs of approximately $1.1 million in fiscal year 2025-26 and $1.8 million annually ongoing for nine additional staff positions: attorneys, special investigators, program analysts, and legal secretaries in its Public Rights Division and Special Prosecutions Section.
- Cost pressures (Trial Court Trust Fund, General Fund) of an unknown but potentially significant amount to the courts to adjudicate criminal charges and civil actions resulting from this bill. A defendant charged with a misdemeanor or felony is entitled to a jury trial and, if the defendant is indigent, legal representation provided by the government. Actual costs will depend on the number of cases filed and the amount of court time needed to resolve each case. It generally costs approximately $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on the Trial Court Trust Fund may create a demand for increased funding for courts from the General Fund. The fiscal year 2025-26 state budget provides $82 million ongoing General Fund to the Trial Court Trust Fund for court operations.
- Costs (local funds, General Fund) to the counties to incarcerate people convicted of price gouging. Actual incarceration costs will depend on the number of convictions and the length of each sentence. The average annual cost to incarcerate one person in county jail is approximately $29,000, though costs are higher in larger counties. County incarceration costs are not subject to reimbursement by the state. However, overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from public safety realignment.
COMMENTS:
- Background. Price gouging occurs when a person selling retail goods or services increases prices significantly after a natural disaster or other state of emergency. Existing law prohibits a selling or offering to sell certain goods or services for a price more than 10% greater than the price charged immediately prior to a declared state of emergency. Price gouging is prohibited for 30 or 180 days after an emergency is declared, depending on the goods or services at issue. A violation of the prohibition is punishable as a misdemeanor by up to one year in county jail or a fine of $10,000, or both jail and a fine. Price gouging is also an unlawful business practice that may be civilly enforced by specified public prosecutors or through a private right of action.
Public prosecutors have actively enforced existing price gouging laws following the fires in Los Angeles County in January 2025. DOJ reported issuing more than 700 warning letters to hotels and landlords alleged to have violated the price gouging statute after the fires, and DOJ and local prosecutors conducted investigations and filed related enforcement actions in the months thereafter. Additionally, in July, the Los Angeles city attorney filed a lawsuit against Airbnb, alleging the platform allowed price gouging in more than 2,000 properties listed on the platform after the fires.
- Related Legislation. AB 380 (M. Gonzalez) extends the time duration in which criminal price gouging protections apply and makes commercial real property subject to criminal price gouging prohibitions. AB 380 is pending in the Senate Appropriations Committee.
Analysis Prepared by: Annika Carlson / APPR. / (916) 319-2081
Date of Hearing: July 15, 2025
Counsel: Ilan Zur
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Nick Schultz, Chair
SBPCA Bill Id:SB 36
Author:(Umberg) – As Amended Ver:June 25, 2025
UPDATED
As Proposed to be Amended in Committee
SUMMARY:
Extends specified criminal prohibitions against price gouging to counties within a 25-mile radius of the counties in the proclamation or declaration of emergency; and expands the statutory basis to issue a search warrant to include specified misdemeanor price gouging crimes. Specifically, this bill:
- Modifies the criminal prohibitions against price gouging during a state of emergency as follows:
- Expands specified price gouging prohibitions pertaining to hotel and motel price increases, rental price increases, and evictions of tenants of residential housing to all counties in the proclamation or declaration of emergency as well as all counties within a 25-mile radius of the counties in the proclamation or declaration of emergency.
- Clarifies that an extension of the price gouging protections authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end.
- Removes the Legislature from the list of entities that may extend price gouging protections, as specified.
- Defines “price gouging,” for purposes of California’s price gouging statute, as “the unlawful conduct of charging higher or greater prices,” as specified.
- Expands the statutory authority for the issuance of a search warrant to include when the property or things to be seized consists of evidence that tends to show that specified misdemeanor price gouging violations pertaining to hotel and motel price increases, rental price increases, and evictions of tenants of residential housing, occurred or are occurring.
- Provides that in addition to any liability for a civil penalty imposed for violating the Unfair Competition Law (UCL), a person who violates the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed $2,500 for each violation, which may be assessed and recovered in a civil action, as specified.
- Requires a housing listing platform, during the period of 30 days following the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, to do all of the following:
- Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates specified price gouging crimes.
- Establish and maintain a policy informing housing providers that listings are prohibited from engaging in specified price gouging during a state of emergency, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing provider’s account.
- Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating specified price gouging crimes, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies.
- Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated specified price gouging crimes.
- Provide a means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response.
- Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging.
- Requires such policies, and mechanism to allow an individual to notify a platform that a person engaged in price gouging to be publicly posted and readily accessible to users.
- Establishes that violating specified criminal prohibitions against price gouging, including, but not limited to, price gouging during a state of emergency or local emergency, is unlawful under the Consumer Legal Remedies Act (CLRA).
- Enables persons displaced due to a state of emergency or a local emergency at the time the violation occurred to collect enhanced penalties when redressing unfair or deceptive acts or practices or unfair methods of competition.
- Defines “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
EXISTING LAW:
- Contains legislative findings that during a state of emergency or local emergency, including, resulting from natural or manmade disasters, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. (Pen. Code, § 396, subd. (a).)
- Prohibits, for 30 days following a proclamation or declaration of emergency, the sale, or offer to sell, any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10% greater than the price charged immediately prior to the proclamation or declaration of emergency, subject to certain exemptions. (Pen. Code, § 396, subd. (b).)
- Prohibits, for 180 days following a proclamation or declaration of emergency, a contractor from selling or offering to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10% greater than the price charged immediately prior to the proclamation or declaration of emergency, subject to certain exemptions. (Pen. Code, § 396, subd. (c).)
- Prohibits, for 30 days following a proclamation or declaration of emergency, an owner or operator of a hotel or motel from increasing the hotel or motel’s regular rates more than 10% than the price charged immediately prior to the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (d).)
- Prohibits, for 30 days following an official proclamation or declaration of emergency, the increase of rental price advertised, offered, or charged for housing, to an existing or prospective tenant for more than 10% than the price charged before the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (e).)
- Prohibits, for 30 days following an official proclamation or declaration of emergency, a landlord from evicting a tenant and renting or offering to rent to another person at a rental price greater than the evicted tenant could be charged, unless the eviction process began prior to the emergency proclamation or declaration. (Pen. Code, § 396, subd. (f).)
- Allows extension of price gouging prohibitions for additional periods beyond the initial 30 days or 180 days of a proclamation or declaration of emergency if deemed necessary to protect the lives, property, or welfare of citizens, although an extension by a local body cannot exceed 30 days (Pen. Code, § 396, subd. (g).)
- Punishes price gouging as a misdemeanor with imprisonment in a county jail for a period not exceeding one year, by a fine of not more than $10,000, or by both. (Pen. Code, § 396, subd. (h).)
- Provides that violations of the price gouging restrictions constitute unlawful business practices and potentially subject violators to injunctions and other remedies, as defined. (Pen. Code, § 396, subd. (i).)
- Defines “state of emergency” as a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor. (Pen. Code, § 396, subd. (j)(1).)
- Defines “local emergency” as a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California. (Pen. Code, § 396, subd. (j)(2).)
- Provides that the right of the people to be secure in their persons, houses, papers, and effects against unreasonable seizures and searches may not be violated; and a warrant may not issue except on probable cause, supported by oath or affirmation, particularly describing the place to be searched and the persons and things to be seized. (U.S. Const., Amend. IV; Cal. Const., art. I, § 13.)
- Defines a “search warrant” as a written order in the name of the people, signed by a magistrate, directed to a peace officer, commanding them to search for a person or persons, a thing or things, or personal property, and, in the case of a thing or things or personal property, bring the same before the magistrate. (Pen. Code, § 1523.)
- Authorizes a search warrant to be issued upon any of the following grounds:
- When the property was stolen or embezzled;
- When the property or things were used as the means of committing a felony;
- When the property or things are in the possession of any person with the intent to use them as a means of committing a public offense, or in the possession of another to whom they may have delivered them for the purpose of concealing them or preventing them from being discovered;
- When the property or things to be seized consist of any item or constitute any evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony;
- When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, or possession of matter depicting sexual conduct of a person under the age of 18 years, has occurred or is occurring;
- When there is a warrant to arrest a person;
- When a provider of electronic communication service or remote computing service has records or evidence, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of any person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom they may have delivered them for the purpose of concealing them or preventing their discovery;
- When the property or things to be seized include an item or any evidence that tends to show a violation of the Labor Code, as specified;
- When the property or things to be seized include a firearm or any other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault;
- When the property or things to be seized include a firearm or any other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a specified person that has been detained or apprehended for examination of their mental condition;
- When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to specified firearm prohibitions;
- When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony or a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code;
- When a sample of the blood of a person constitutes evidence that tends to show a violation of misdemeanor driving under the influence and the person from whom the sample is being sought has refused an officer's request to submit to, or has failed to complete, a blood test;
- When the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order;
- When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to specified firearm prohibitions, and that the person has failed to relinquish the firearm as required by law;
- When the property or things to be seized are controlled substances or a device, contrivance, instrument or paraphernalia used for unlawfully administering a controlled substance as provided;
- When the warrant is for a blood sample of a person that tends to show a violations related to the operation of a vessel, or manipulating water skis, an aquaplane, or a similar device, while under the influence of alcohol or drugs;
- When the property or things to be seized consist of evidence that tends to show that a violation of the crime of disorderly conduct related to invasion of privacy has occurred or is occurring;
- When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to any person;
- When the property or things to be seized consists of evidence that tends to show unlawful photographing of a deceased person by a first responder has occurred or is occurring; or,
- When the property to be seized includes ammunition owned by a person subject to firearm prohibitions due to a specified mental illness (Pen. Code, § 1524, subd. (a).)
- Provides that a search warrant cannot be issued but upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched. (Pen. Code, § 1525.)
- Requires a magistrate to issue a search warrant if they are satisfied of the existence of the grounds of the application or that there is probable cause to believe their existence. (Pen. Code, § 1528, subd. (a).)
FISCAL EFFECT:
Unknown
COMMENTS:
- Author's Statement: According to the author, "In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
“SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
“Sb 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
“California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.”
- Expanding the Territory Covered by Price Gouging Prohibitions: Price gouging occurs when a person or business selling specified goods or services increases their prices significantly after a natural disaster or other state of emergency. Existing law prohibits selling or offering to sell certain goods or services for a price more than 10% greater than the price charged immediately prior to a declared state of emergency. (Pen. Code, § 396, subds. (b)-(e).) Specifically, this prohibition applies when the President of the United States or the Governor proclaims a state of emergency or when an authorized official, board, or other governing body in a county or city declares a local emergency. (Ibid.) Currently, price gouging is prohibited for 30 or 180 days after an emergency is declared, depending on the goods or services at issue. (Ibid.) A violation of the prohibition is punishable as a misdemeanor by up to one year in county jail or a fine of $10,000, or by both. Price gouging is also an unlawful business practice that can be civilly enforced by specified public prosecutors or through a private right of action. (Pen. Code, § 396, subd. (i).)
This bill would make several changes to California’s price gouging statute. First, and most notably, it would apply the price gouging prohibitions pertaining to hotel and motel price increases, rental price increases, and evictions of tenants of residential housing not only to all counties in the proclamation or declaration of emergency but counties within a 25-mile radius of the counties in the proclamation or declaration of emergency.
Depending on the county affected, the geographic area proposed by this bill may be significant. For example, Los Angeles County is one of the nation’s largest counties, encompassing 4,084 square miles.[1] Counties within a 25 mile radius of Los Angeles’ borders include adjacent counties such as Ventura County (2,208 square miles),[2] Kern County (8,161 square miles),[3] San Bernardino County (20,160 square miles),[4] and Orange County (948 square miles).[5] The total area covered here is 35,561 square miles— roughly a fifth of the geographic size of California.[6] By comparison, the states of West Virginia, Maryland, Hawaii, Massachusetts, Vermont, New Hampshire, New Jersey, Connecticut, Delaware, and Rhode Island are all smaller in size than the area which would be covered under this example.[7]As drafted, an emergency declaration in one county would mandate specified price gouging prohibitions in any counties within a 25 mile radius of that county. This may create confusion for businesses operating in a neighboring county within the 25 mile radius, but who may in fact be hundreds of miles away from the county experiencing a state of emergency, who may not be aware that they are subject to the price gouging restrictions associated with their neighboring county
Further, the duration of a state of emergency or a local emergency can often be lengthy, and may last years. The Governor’s Office of Emergency Services (CalOES) website contains a list of states of emergency proclaimed by the Governor. As of June 18, 2025, there are over 50 open state of emergency proclamations, covering not only fires and storms, but also bird flu, extreme heat events, and tree mortality.[8] Some of these proclamations of states of emergency have been in effect for years. The vast majority of counties in the state have some state of emergency in effect.[9] Given the number of emergency proclamations in effect, and the expansive application of this bill, effectively this may impose price gouging restrictions and penalties across the vast majority of the state. Committee amendments seek to remedy this issue, but the author may wish to consider further limiting the scope of this expansion.
Second, this bill would clarify that an extension of the price gouging protections authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end. As referenced above, price gouging protections usually last for a specified period of days, depending on the goods or services sold. Additionally, price gouging prohibitions may be extended by a local legislative body, local official, the Governor or the Legislature beyond the initial 30 or 180 days where necessary to protect the lives, property, or welfare of citizens, although an extension by a local body cannot exceed 30 days. (Pen. Code, § 396, subd. (g).) For example, on March 7, 2025, Governor Newsom extended price gouging protections in response to the fires in Los Angeles.[10] The Los Angeles County Board of Supervisors recently voted to extend rental price gouging protections, which were set to expire on July 1, 2025.[11]
- Expanding the Search Warrant Statute to Include Misdemeanor Price Gouging: Both the United States and the California Constitutions guarantee the right of all persons to be secure from unreasonable searches and seizures. (U.S. Const., amend. IV; Cal. Const., art. 1, sec. 13.) This protection applies to all unreasonable government intrusions into legitimate expectations of privacy. (United States v. Chadwick (1977) 433 U.S. 1, 7, overruled on other grounds by California v. Acevedo (1991) 500 U.S. 565.) In general, a search is not valid unless it is conducted pursuant to a warrant. A search warrant is a written order, signed by a magistrate, directed to a peace officer, commanding them to search for a person, thing, or personal property, and, in the case of a thing or things or personal property, bring the same before the magistrate. (Pen. Code, § 1523.) A search warrant may not be issued without probable cause. "Reasonable and probable cause exists if a man of ordinary care and prudence would be led to conscientiously entertain an honest and strong suspicion that the accused is guilty." (People v. Alvarado (1967) 250 Cal.App.2d 584, 591.) Probable cause supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched. (Pen. Code, § 1525.) The mere reasonableness of a search, assessed in light of the surrounding circumstances, is not a substitute for the warrant required by the Constitution. (Arkansas v. Sanders (1979) 442 U.S. 753, 758, overruled on other grounds by California v. Acevedo, supra.) There are exceptions to the warrant requirement, but the burden of establishing an exception is on the party seeking one. (Arkansas v. Sanders (1979) 442 U.S. 753, 760, overruled on other grounds by California v. Acevedo, supra.)
The search warrant statute has significantly expanded over the last two decades and currently includes 21 different bases for issuing a search warrant. Under Penal Code section 1524, a search warrant may be issued “[w]hen property or things were used as the means of committing a felony.” (Pen. Code, § 1524, subd. (a)(2).) Other provisions authorize a search warrant regardless of whether the crime was a felony or misdemeanor, such as "[w]hen the property was stolen or embezzled." (Pen. Code, § 1524, subd. (a)(1).) Additionally, Penal Code section 1524 provides that a search warrant may be issued “[w]hen the property or things are in the possession of any person with the intent to use them as a means of committing a public offense,” which includes misdemeanors and infractions (Pen. Code, §§ 1524, subd. (a)(3) & 16.) This bill creates another statutory basis to issue a search warrant. Specifically, it authorizes a search warrant “when the property or things to be seized consists of evidence that tends to show that [price gouging] has occurred or is occurring.” This search warrant authorization is specific to price gouging violations pertaining to hotel and motel price increases, rental price increases, and evictions of tenants of residential housing.
The need to expand the search warrant statute to include a class of misdemeanor crimes is unclear. In the aftermath of the January 2025 fires, there were thousands of complaints of price gouging in Los Angeles County.[12] In March 2025, the Attorney General announced that, “[i]n addition to sending over 700 warning letters to hotels and landlords, the California Department of Justice has several active investigations into price gouging.”[13] The Attorney General’s Office subsequently announced the filing of charges against individuals suspected to have engaged in price gouging.[14] In June 2025, The Los Angeles Times reported that the Attorney General filed his fourth price gouging charge against a real estate agent that allegedly increased the price of a Beverly Hills rental by more than 30 percent.[15] Similarly, the Los Angeles City Attorney recently filed both a criminal and civil actions against a global rental corporation who is alleged to have engaged in price gouging after the fires.[16] However, such charges may only be targeting a small fraction of the received complaints.[17]
The author’s background information and statement does not discuss the need for this expansion. Moreover, this committee has not received any letters from prosecutors or law enforcement organizations citing the need for this expanded warrant authority.
Additionally, this bill would require housing listing platforms, during the 30 days following the proclamation or declaration of a state of emergency, to take specific actions including, among other things, providing a means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response. The author may wish to clarify that the means “to submit law enforcement requests, including warrants” must still comply with existing statutory procedures that apply to serving and administering warrants. (See Pen. Code, § 1524 et. seq.)
- Argument in Support: According to Consumer Attorneys of California, “[SB 36] strengthens California’s price gouging laws during a state or local emergency.
“The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
“SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
- Increases civil penalties for those who take advantage of displaced victims;
- Allows victims to bring their own legal actions and seek additional damages;
- Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
- Grants public prosecutors warrant authority to investigate housing-related price gouging;
- Expands price gouging protections to include counties within a 50-mile radius of the affected area.
“These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.”
- Argument in Opposition: According to the California Public Defenders Association, “Under existing law price gouging may be punished with a civil fine or, pursuant to Penal Code section 396, a misdemeanor.
“The portion of the bill we object to is new subdivision (23) of Penal Code section 1524, which covers the issuance of search warrants. Subdivision 23 would be added to allow the issuance of a search warrant ‘When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), €, or (f) of Section 396, has occurred or is occurring.’
“As of 1991, Penal Code section 1524 was a relatively focused section authorizing the issuance of search warrant in only 5 instances. Those five instances, however, were very broad, covering all stolen or embezzled property, all felonies, child pornography, as well as a provision broadly allowing warrants to issue for evidence of property that is the means of committing a ‘public offense.’
“Penal Code section 1524 has wildly expanded and now has 21 subdivisions describing when search warrants may issue. This bill adds yet one more. This continued expansion is concerning.
“The current bill may prove to be unnecessary. Although price gouging is a misdemeanor, it may well be that a bad actor does not limit this type of theft to misdemeanor values, but instead ventures into felony grand theft territory. Under current law, a search warrant may issue for evidence relating to a felony.”
- Related Legislation:
- AB 380 (Gonzalez), would expand price gouging and eviction prohibitions to include commercial real property and would extend the period of protection during a state of emergency to either 180 days or 365 days following the emergency declaration or proclamation. AB 380 is pending a hearing in Senate Public Safety Committee.
- AB 299 (Gabriel), would provide, until January 1, 2031, that a guest of a lodging shall not have their continued occupancy constitute a new tenancy and shall not be considered a person who hires for purposes of existing law governing tenancy and unlawful detainer proceedings if the guest is living in the lodging as a result of their prior housing being damaged, destroyed, or otherwise made uninhabitable by a disaster. AB 299 is pending a hearing in Senate Judiciary Committee.
- SB 368 (Smallwood-Cuevas), would have required the Department of Justice and local prosecutors to establish partnerships to enforce the provisions the criminal price gouging statute. SB 368 was held in suspense Senate Appropriations Committee.
- Prior Legislation:
- SB 1133 (Archuleta), of the 2021-22 Legislative Session, would have required an extension of price gouging protections, as defined, if they would apply to rental housing and the state of emergency has been in effect for over a year or more. SB 1133 bill was held in suspense in the Senate Appropriations Committee.
- SB 1212 (Caballero), of the 2021-22 Legislative Session, would have made it a misdemeanor, upon the proclamation or declaration of a state of emergency for any temporary services employer to increase its non-labor costs, as defined, for health care personnel by more than 10%, except as specified. SB 1212 was held in the Senate Judiciary Committee.
- AB 1936 (Rodriguez), of the 2019-20 Legislative Session, would have specified that, for a proclamation or declaration of emergency made because of a public safety power shutoff or because of an announcement that a public safety power shutoff will occur, the restrictions on increased pricing apply for a period lasting until 72 hours after the restoration of power. AB 1936 was held in the Assembly Appropriations Committee.
- AB 3023 (Gabriel), of the 2019-20 Legislative Session, would have made price gouging protections applicable to a short-term lodging establishment, defined as any hotel, motel, bed and breakfast inn, or other similar lodging establishment. AB 3023 was referred to but did not receive a hearing in the Assembly Public Safety Committee.
- SB 1196 (Umberg), Chapter 339, Statutes of 2020, provided that, if a contractor or business did not offer an item or service prior to the state of emergency, they are not allowed to charge more than 50% more of the total cost of the item to consumers.
- AB 1919 (Wood), Chapter 631, Statutes of 2018, expanded the scope of the crime of price gouging by including rental housing that was not on the market at the time of the proclamation or declaration of emergency.
- SB 1133 (Archuleta), of the 2021-22 Legislative Session, would have required an extension of price gouging protections, as defined, if they would apply to rental housing and the state of emergency has been in effect for over a year or more. SB 1133 bill was held in suspense in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Rural Legal Assistance Foundation, INC.
Consumer Attorneys of California
Consumer Federation of California
Consumer Protection Policy Center/usd School of Law
Consumer Watchdog
Los Angeles County District Attorney's Office
Techequity Action
Oppose
California Business Roundtable
California Public Defenders Association
Analysis Prepared by: Ilan Zur / PUB. S. / (916) 319-3744
County of Los Angeles, About LA County (accessed July 6, 2025), available at: https://lacounty.gov/government/about-la-county/about/ ↑
County of Ventura, Ventura County Executive Office (accessed July 6, 2025), available at: https://www.ventura.org/county-executive-office/about-us/ ↑
Apple Maps, Kern County (accessed July 6, 2025), available at: https://maps.apple.com/place?auid=5609905159221694280&address=Kern+County%2C+CA%2C+United+States&coordinate=35.3466288%2C-118.7295064&name=Kern+County&lsp=7618 ↑
San Bernardino County, County Snapshot (accessed July 6, 2025), available at: https://selectsbcounty.com/county-snapshot ↑
Apple Maps, Orange County (accessed Juley 6, 2025), available at: https://maps.apple.com/place?auid=16450146479720451860&address=Orange+County%2C+CA%2C+United+States&coordinate=33.6756872%2C-117.7772068&name=Orange+County&lsp=7618 ↑
World Atlas, US States by Size (accessed July 6, 2025), available at: https://www.worldatlas.com/geography/us-states-by-size.html ↑
Ibid. ↑
Governor’s Office of Emergency Services, Open State of Emergency Proclamations (accessed June 18, 2025), available at: https://www.caloes.ca.gov/office-of-the-director/policy-administration/legal-affairs/emergency-proclamations/ ↑
Governor Gavin Newsom, Governor Newsom extends protections for LA firestorm survivors (March 7, 2025), available at: https://www.gov.ca.gov/2025/03/07/governor-newsom-extends-protections-for-la-firestorm-survivors/ ↑
Julie Sharp, LA County Board of Supervisors votes to extend rent protections for wildfire victims (June 25, 2025), available at: https://www.cbsnews.com/losangeles/news/la-county-board-of-supervisors-votes-to-extend-rent-protections-for-wildfire-victims/ ↑
Jack Flemming, Price-gouging charges slowly mount after the fires, but some say it’s not enough (June 20, 2025), available at: https://www.latimes.com/california/story/2025-06-20/here-are-the-people-and-companies-charged-with-price-gouging-in-the-wake-of-the-l-a-fires#:~:text=California%20Atty.-,Gen.,10%25%20after%20a%20natural%20disaster. ↑
State of California Department of Justice, Attorney General Bonta Issues Consumer Alert Following Extension of Price Gouging Protections Until July 1, 2025 (March 7, 2025), available at: https://oag.ca.gov/news/press-releases/attorney-general-bonta-issues-consumer-alert-following-extension-price-gouging ↑
State of California Department of Justice, Attorney General Bonta Files Charges Against a Southern California Real Estate Agent for Price Gouging Eaton Fire Victims (January 22, 2025), available at: https://oag.ca.gov/news/press-releases/attorney-general-bonta-files-charges-against-southern-california-real-estate#:~:text=As%20part%20of%20Attorney%20General,been%20accused%20of%20price%20gouging; State of California Department of Justice, Attorney General Bonta Charges Second Los Angeles Realtor for Price Gouging Victims of Eaton Fire (January 28, 2025), available at: https://oag.ca.gov/news/press-releases/attorney-general-bonta-charges-second-los-angeles-realtor-price-gouging-victims; State of California Department of Justice, Attorney General Bonta Files Charges Against Los Angeles Real Estate Agent, Landlord for Price Gouging in Wake of Eaton Fire (February 18, 2025), available at: https://oag.ca.gov/news/press-releases/attorney-general-bonta-files-charges-against-los-angeles-real-estate-agent.) ↑
Jack Flemming, Price-gouging charges slowly mount after the fires, but some say it’s not enough (June 20, 2025), available at: https://www.latimes.com/california/story/2025-06-20/here-are-the-people-and-companies-charged-with-price-gouging-in-the-wake-of-the-l-a-fires#:~:text=California%20Atty.-,Gen.,10%25%20after%20a%20natural%20disaster. ↑
Los Angeles City Attorney’s Office, LA City Attorney Hydee Feldstein Soto Files Civil Suit and Criminal Charges to Fight Price Gouging in Wake of LA Wildfires (February 4, 2025), available at: https://cityattorney.lacity.gov/updates/la-city-attorney-hydee-feldstein-soto-files-civil-suit-and-criminal-charges-fight-price.) ↑
See supra note 13. ↑
Date of Hearing: June 24, 2025
ASSEMBLY COMMITTEE ON JUDICIARY
Ash Kalra, Chair
SBPCA Bill Id:SB 36
Author:(Umberg) – As Amended Ver:May 23, 2025
As Proposed to be Amended
SENATE VOTE: 29-7
SUBJECT: Price gouging: state of emergency
KEY ISSUE: SHOULD CALIFORNIA EXPAND CIVIL REMEDIES TO ADDRESS PRICE GOUGING DURING DECLARED EMERGENCIES, PARTICULARLY WHEN THE MISCONDUCT TARGETS INDIVIDUALS DISPLACED DUE TO A STATE OR LOCAL EMERGENCY?
SYNOPSIS
In the aftermath of wildfires and other disasters, Californians displaced from their homes are frequently targeted by illegal price hikes for rental housing and emergency services. Existing price gouging protections under Penal Code Section 396 cap price increases at 10 percent during declared emergencies, and consumer protection laws such the Unfair Competition Law and the Consumer Legal Remedies Act provide robust avenues for redress. SB 36 further strengthens California’s emergency consumer protection laws by expanding the enforcement toolkit and explicitly applying these protections to online housing intermediaries. Specifically, this bill (1) adds new civil penalties under the Unfair Competition Law when unfair conduct targets displaced persons; (2) amends the Consumer Legal Remedies Act to classify price gouging as a deceptive practice, enabling displaced consumers to bring private actions; and (3) extends enhanced remedies under Civil Code Section 3345 to persons displaced due to an emergency. The bill also (4) imposes duties on housing listing platforms during the first 30 days of an emergency, including flagging and removing illegal listings and cooperating with law enforcement; and (5) amends Penal Code Section 396 to define “price gouging,” clarify the geographic reach of emergency declarations, and expand investigatory tools. Author’s amendments, as discussed in the SUMMARY and throughout the analysis, clarify that enhanced remedies apply only if the person was displaced at the time of the violation and conform formatting to existing Civil Code style. This author-sponsored measure is supported by the Consumer Attorneys of California and Consumer Watchdog, among others. Formal opposition has been limited to a single provision—amending Penal Code Section 1524 to authorize search warrants in misdemeanor price gouging cases—which falls within the jurisdiction of the Assembly Public Safety Committee, which is scheduled to hear this measure in the event of its successful passage out of this Committee.
SUMMARY: Strengthens consumer protections against price gouging during states of emergency by enhancing civil remedies under the Unfair Competition Law and Consumer Legal Remedies Act, extending protections to displaced persons, imposing obligations on housing listing platforms, and expanding investigatory tools for enforcement. Specifically, this bill:
- Provides that, in addition to any liability for a civil penalty imposed for violating the Unfair Competition Law (UCL), a person is liable for a civil penalty of up to $2,500 if they committed the act of unfair competition against someone displaced due to a state of emergency or local emergency at the time the violation occurred.
- Establishes that is unlawful under the Consumer Legal Remedies Act (CLRA) to engage in price gouging, as provided, thereby granting affected consumers a private right of action.
- Enables persons displaced due to a state of emergency or a local emergency to collect enhanced penalties when redressing unfair or deceptive acts or practices or unfair methods of competition.
- Defines and prohibits “price gouging” and reworks the provisions governing extensions of the relevant periods in which the section is in effect.
- States that the prohibition on price gouging applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
- Establishes that a search warrant may be issued when the property or things to be seized consist of evidence that tends to show that a price gouging violation, as provided, has occurred or is occurring.
EXISTING LAW:
- Establishes the Unfair Competition Law (UCL), which provides a statutory cause of action for any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. (Business and Professions Code Section 17200 et seq.)
- Defines “unfair competition” to mean and include any unlawful, unfair, or fraudulent business act or practice and any unfair, deceptive, untrue, or misleading advertising, and any act prohibited by the False Advertising Law (FAL), Business and Professions Code Section 17500 et seq. (Business and Professions Code Section 17200.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. (Business and Professions Code Section 17203.)
- Requires actions for relief pursuant to the UCL be prosecuted exclusively in a court of competent jurisdiction and only by certain public prosecutors or by a person who has suffered injury in fact and has lost money or property as a result of the unfair competition. (Business and Professions Code Section 17204.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty not to exceed $2,500 for each violation. (Business and Professions Code Section 17206 (a).)
- Provides that, in assessing the amount of the civil penalty, the court must consider any one or more of the relevant circumstances presented by any of the parties to the case, including the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (Business and Professions Code Section 17206 (b).)
- Establishes the Consumer Legal Remedies Act (CLRA), which prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. (Civil Code Section 1750 et seq.)
- Provides that any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 of the Civil Code may bring an action against that person to recover or obtain any of the following:
- Actual damages, but in no case shall the total award of damages in a class action be less than $1,000;
- An order enjoining the methods, acts, or practices;
- Restitution of property;
- Punitive damages;
- Court costs and attorney’s fees to a prevailing plaintiff. However, reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith; and any other relief that the court deems proper. (Civil Code Section 1780 (a), (e).)
- Requires—in an action to redress unfair or deceptive acts or practices, or unfair methods of competition—that the trier of fact consider the following factors, in addition to other appropriate factors, in deciding the amount of the fine, civil penalty, other penalty, or other remedy:
- That the defendant knew, or should have known, that the defendant’s conduct was directed to one or more senior citizens, disabled persons, or veterans.
- That the defendant’s conduct caused one or more senior citizens, disabled persons, or veterans to suffer any of the following:
- Loss or encumbrance of a primary residence, principal employment, or source of income.
- Substantial loss of property set aside for retirement, or for personal or family care and maintenance.
- Substantial loss of payments received under a pension or retirement plan or a government benefits program, or of assets essential to the health or welfare of the senior citizen or disabled person.
- That one or more senior citizens, disabled persons, or veterans were substantially more vulnerable than other members of the public to the defendant’s conduct because of age, poor health, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (Civil Code Section 3345.)
- Establishes that a trier of fact who is authorized to impose a fine, penalty or other remedy, as provided in 9), may impose such a remedy in an amount up to three times greater than authorized by statute if the action was brought by, or on behalf of, a senior citizen, disabled person, or veteran. (Civil Code Section 3345 (b).)
- Prohibits, for 30 days following an official proclamation or declaration of emergency, the sale or offer to sell of any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for more than a 10 percent greater price than the price charged prior to the proclamation or declaration of emergency. (Penal Code Section 396 (b).)
- Establishes that violations of the price gouging restrictions constitute unlawful business practices and potentially subject violators to injunctions and other remedies, as defined. (Penal Code Section 396 (i).)
- Defines “state of emergency” as a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor. (Penal Code Section 396 (j)(1).)
- Defines “local emergency” as a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a local emergency has been declared by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county in California. (Penal Code Section 396 (j)(2).)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: When wildfires and other natural disasters displace Californians from their homes, many face not only the trauma of evacuation and loss, but potential exploitation in the rental housing market. Despite California’s longstanding ban on price gouging during declared emergencies (Penal Code Section 396), landlords and short-term rental operators across Los Angeles County repeatedly and flagrantly violated this law in the aftermath of the January 2025 wildfires, targeting evacuees with predatory rent hikes that far exceed legal limits.
Following the devastating Palisades and Eaton fires, public reports and investigations revealed hundreds of rental listings—especially on platforms like Zillow and Craigslist—advertising homes at inflated prices up to 124% above pre-emergency rates, often within hours of evacuation orders being issued. One Bel Air listing in the days after the fires, listed a 4-bedroom home for $29,500—a nearly 86% price hike from September 2024. (Asking rents skyrocket as LA fires destroy homes, LAist, Jan. 11, 2025 (last accessed Jun. 19, 2025).) Advocates and journalists documented dozens of such cases in real time, many compiled into public spreadsheets shared among fire survivors and housing rights organizers. A coalition calling itself the “Fire Rent Gouging Brigade” catalogued over 1,300 listings that appeared to violate the law, many of which stayed active for weeks. These listings often targeted wealthier zip codes, where landlords sought to capitalize on displaced renters fleeing danger zones. (How widespread is post-fire rent gouging? These volunteer sleuths analyzed the data, LAist, Feb. 4, 2025 (last accessed Jun. 19, 2025).)
Even after the Governor’s emergency proclamation activated price gouging protections under Penal Code Section 396, enforcement has been sporadic and largely reactive. According to supporters, despite clear documentation of violations, only a handful of cases have resulted in investigations, in part because of the lack of proactive enforcement tools and the difficulty of gathering admissible evidence. Meanwhile, renters without insurance—many from working-class or immigrant neighborhoods—have been left with few alternatives and little recourse.
The author explains the impetus for this measure:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
Sb 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
Existing law. California law prohibits a variety of unfair and deceptive practices in consumer transactions, including price gouging during declared emergencies. Penal Code Section 396 makes it a misdemeanor to raise the price of essential goods and services—including housing, gasoline, emergency supplies, hotel accommodations, and reconstruction services—by more than 10 percent following the proclamation of a state or local emergency, unless the price increase is justified by additional costs. These protections generally apply for 30 days (or longer for certain services), and may be extended by state or local authorities. Violations are enforceable both criminally and civilly and are considered an “unlawful business practice” under Business and Professions Code Section 17200, which permits enforcement by public prosecutors and, in limited circumstances, private plaintiffs seeking restitution or injunctive relief.
Separately, the Consumers Legal Remedies Act (CLRA) prohibits enumerated unfair or deceptive acts in transactions involving the sale or lease of goods or services to consumers. Under Civil Code Section 1780, a consumer may bring a private action for damages, restitution, injunctive relief, and, in certain cases, punitive damages. However, prior to this bill, violations of California’s anti–price gouging law were not explicitly included in the list of deceptive practices under the CLRA. Similarly, Civil Code Section 3345 authorizes a trier of fact to enhance penalties in actions brought for the benefit of senior citizens, disabled persons, and veterans—but not individuals displaced by an emergency—even when those individuals are uniquely vulnerable to economic exploitation.
This bill strengthens California’s emergency consumer protection laws by creating a comprehensive civil enforcement framework for price gouging and imposes certain obligations on housing listing platforms, among other things.
First, the bill amends Civil Code Section 1770 to add a new subdivision (a)(30), which designates a violation of Penal Code Section 396—including illegal rental price increases or evictions followed by gouging—as an unlawful act under the CLRA. This change grants displaced tenants and other affected consumers a private right of action with access to CLRA remedies, including compensatory and punitive damages, attorney’s fees, and injunctive relief.
Second, as proposed to be amended, the bill amends Civil Code Section 3345 to expand enhanced penalty protections for unfair or deceptive acts to include “persons displaced due to a state of emergency or local emergency at the time the violation occurred.” As a result, if a displaced person brings or benefits from an action to redress price gouging or unfair practices—whether under the CLRA, UCL, or another statute—a court may consider their vulnerability and increase any discretionary civil penalty, fine, or deterrent remedy by up to three times the statutory amount. This amendment recognizes that displaced persons, like seniors or disabled individuals, are especially susceptible to predatory conduct in the aftermath of a disaster, particularly with respect to emergency housing, goods, and services.
Third, the bill adds new Business and Professions Code Section 17206.3 to authorize enhanced civil penalties in actions brought by public prosecutors under the UCL for price gouging violations targeting displaced persons. Specifically, if a person violates the UCL and the conduct is directed at or harms a person displaced by an emergency, the court may impose a penalty of up to $2,500 per violation, in addition to the standard penalties under Section 17206.
Together, these amendments to existing law reinforce the state’s price gouging protections by ensuring individual consumers have a private right of action for price-gouging under the CLRA, providing trebled penalties where vulnerable displaced persons suffer economic harm, and authorizing enhanced civil penalties under the UCL when public enforcement actions target emergency-related exploitation.
Consider the following hypothetical: A wildfire breaks out in Sonoma County and prompts the Governor to issue a statewide emergency proclamation. Dozens of neighborhoods are placed under mandatory evacuation orders, and residents—many of whom lose access to their homes due to fire damage or hazardous conditions—are forced to seek short-term housing. One such evacuee, Maria, a single mother of two, is displaced when her family home suffers smoke and water damage. She searches online for a rental and finds a two-bedroom unit in a nearby county listed on a housing platform at $4,000 per month—double the unit’s price the week before the fires. The listing does not disclose any lawful cost justification, and no improvements or added services explain the price hike.
Under existing law, this price increase would likely constitute unlawful price gouging under Penal Code section 396, which caps rental price increases at 10 percent during an emergency unless justified. However, Maria would have few individual remedies under existing law. Under SB 36, Maria would now be entitled to significant civil remedies. Because Penal Code Section 396 is designated an unlawful act under the CLRA by proposed Civil Code Section 1770(a)(30), Maria may file a private lawsuit seeking actual damages, punitive damages, injunctive relief, and attorney’s fees. Additionally, because Maria was displaced by a declared emergency at the time of the violation, she would qualify as a protected person under Civil Code Section 3345 as amended. This means the court could enhance any civil penalties or deterrent remedies by up to three times, recognizing her heightened vulnerability during the emergency.
If a public prosecutor also brought a public enforcement action under the Unfair Competition Law based on the same conduct, the court could impose an additional $2,500 per violation under the new Section 17206.3, on top of the standard UCL penalties. These layers of protection—private action, enhanced penalties for vulnerability, and heightened public penalties—are designed to deter the kind of opportunistic exploitation that arises during crises and provide meaningful accountability for those who target displaced persons.
Fourth, the bill imposes affirmative duties on online housing listing platforms during the initial 30 days following an emergency declaration. Specifically, platforms must:
- Remove listings flagged by law enforcement as violating Penal Code Section 396;
- Maintain and publicly post policies informing housing providers and consumers of the law’s requirements and consequences;
- Provide tools for users to report suspected violations and for law enforcement to submit requests and legal process;
- Maintain internal records and procedures to comply with these duties.
These provisions ensure that digital intermediaries—many of whom have played a central role in the post-disaster rental marketplace—cannot ignore illegal conduct facilitated by their platforms.
Finally, the bill amends Penal Code Section 396 and 1524, both of which fall within the jurisdiction of the Assembly Committee on Public Safety, which will hear this bill in the event of its successful passage out of the Judiciary Committee. Penal Code Section 1524 adds a new subdivision (a)(23), expressly authorizing the issuance of search warrants where there is probable cause to believe that evidence of a price gouging violation. The bill also makes key changes to Section 396, the existing price gouging law. Specifically, the bill expressly defines “price gouging” and expands the geographic scope of the measure to all adjacent counties and counties within a 50-mile radius of those named in a proclamation or declaration of emergency.
The California Governor’s Office of Emergency Services (Cal OES) maintains an official and regularly updated list of all active emergency proclamations on its website. (https://www.caloes.ca.gov/office-of-the-director/policy-administration/legal-affairs/emergency-proclamations/.) This resource provides businesses, consumers, and enforcement agencies with authoritative information about when and where a state of emergency or local emergency has been declared. Under existing law, a declaration triggers the protections and restrictions of Penal Code Section 396, including the 10 percent price cap on essential goods and services such as rental housing, food, fuel, and emergency supplies. With the amendments proposed by SB 36, businesses must also determine whether they fall within the expanded geographic scope of the statute. Accordingly, a business must consult the Cal OES emergency proclamation database to identify the counties covered by an active declaration, and then map its own location relative to those counties to assess whether the price gouging restrictions apply.
Author’s Amendments.
- Amendment to conform format to existing law, which lists violations of the CLRA using the gerund.
1770. (a)(30) Engage in a violation of Violating Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
- Amendments to clarify that enhanced relief extends to people displaced due to disaster at the time the violation occurred. Unlike veterans or senior citizens, displaced persons do not retain that status in perpetuity. Also makes additional clarifying amendments.
17206.3. (a) (1) In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurs, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
3345. (a) (4) Persons displaced due to a state of emergency or a local emergency at the time the violation occurs. , as defined in Section 17206.3 of the Business and Professions Code. “State of emergency” and “local emergency” have the same meaning as in Section 396 of the Penal Code.
ARGUMENTS IN SUPPORT: The Consumer Attorneys of California explain their support of this measure:
The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
• Increases civil penalties for those who take advantage of displaced victims;
• Allows victims to bring their own legal actions and seek additional damages;
• Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
• Grants public prosecutors warrant authority to investigate housing-related price gouging;
• Expands price gouging protections to include counties within a 50-mile radius of the affected area.
These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.
ARGUMENTS IN OPPOSITION: The Committee has not received any formal opposition on any of the provisions of the bill amending civil enforcement or obligations. The only letter of opposition was received by the California Public Defenders Association (CPDA), which opposes this measure unless it is amended to delete the provision that expands the liability to obtain a search warrant for a misdemeanor crime. Again, this issue related to search warrants falls within the jurisdiction of the Assembly Public Safety Committee. CPDA explains its opposition to this specific provision:
Essentially, this bill deals with price gouging during a state of emergency. Under existing law price gouging may be punished with a civil fine or, pursuant to Penal Code section 396, a misdemeanor.
The portion of the bill we object to is new subdivision (23) of Penal Code section 1524, which covers the issuance of search warrants. Subdivision 23 would be added to allow the issuance of a search warrant “When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.”
As of 1991, Penal Code section 1524 was a relatively focused section authorizing the issuance of search warrant in only 5 instances. Those five instances, however, were very broad, covering all stolen or embezzled property, all felonies, child pornography, as well as a provision broadly allowing warrants to issue for evidence of property that is the means of committing a “public offense.”
Penal Code section 1524 has wildly expanded and now has 21 subdivisions describing when search warrants may issue. This bill adds yet one more. This continued expansion is concerning.
The current bill may prove to be unnecessary. Although price gouging is a misdemeanor, it may well be that a bad actor does not limit this type of theft to misdemeanor values, but instead ventures into felony grand theft territory. Under current law, a search warrant may issue for evidence relating to a felony.
REGISTERED SUPPORT / OPPOSITION:
Support
California Rural Legal Assistance Foundation, INC.
Consumer Attorneys of California
Consumer Federation of California
Consumer Protection Policy Center/USD School of Law
Consumer Watchdog
Techequity Action
Opposition
California Public Defenders Association (CPDA)
Analysis Prepared by: Shiran Zohar / JUD. / (916) 319-2334
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 36 |
THIRD READING
Bill No: SB 36
Author: Umberg (D) and Smallwood-Cuevas (D), et al.
Amended: 5/23/25
Vote: 21
SENATE JUDICIARY COMMITTEE: 10-0, 4/8/25
AYES: Umberg, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Wahab, Wiener
NO VOTE RECORDED: Niello, Valladares, Weber Pierson
SENATE PUBLIC SAFETY COMMITTEE: 5-1, 4/22/25
AYES: Arreguín, Caballero, Gonzalez, Pérez, Wiener
NOES: Seyarto
SENATE APPROPRIATIONS COMMITTEE: 5-1, 5/23/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto
NO VOTE RECORDED: Dahle
SUBJECT: Price gouging: state of emergency
SOURCE: Author
DIGEST:
This bill strengthens the laws protecting those affected by wildfires and other emergencies in the state, including from price gouging.
ANALYSIS:
Existing law:
- Establishes the Unfair Competition Law (UCL), which provides a statutory cause of action for any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. (Business and Professions Code (Bus. & Prof. Code) § 17200 et seq.)
- Defines “unfair competition” to mean and include any unlawful, unfair, or fraudulent business act or practice and any unfair, deceptive, untrue, or misleading advertising, and any act prohibited by the False Advertising Law (FAL), (Bus. & Prof. Code § 17200.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. (Bus. & Prof. Code § 17203.)
- Requires actions for relief pursuant to the UCL be prosecuted exclusively in a court of competent jurisdiction and only by the following:
- the Attorney General;
- a district attorney;
- a county counsel authorized by agreement with the district attorney in actions involving violation of a county ordinance;
- a city attorney of a city having a population in excess of 750,000;
- a county counsel of any county within which a city has a population in excess of 750,000;
- a city attorney in a city and county;
- a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association with the consent of the district attorney; or
- a person who has suffered injury in fact and has lost money or property as a result of the unfair competition. (Bus. & Prof. Code § 17204.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty not to exceed $2,500 for each violation. The court shall impose a civil penalty for each violation. In assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (Bus. & Prof. Code § 17206.)
- Establishes the Consumer Legal Remedies Act (CLRA), which prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. (Civil (Civ.) Code § 1750 et seq.)
- Provides that any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 of the Civil Code may bring an action against that person to recover or obtain any of the following:
- actual damages, but in no case shall the total award of damages in a class action be less than $1,000;
- an order enjoining the methods, acts, or practices;
- restitution of property;
- punitive damages;
- court costs and attorney’s fees to a prevailing plaintiff. However, reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith; and
- any other relief that the court deems proper. (Civ. Code § 1780(a), (e).)
- Requires the trier of fact, when an action is brought on behalf of or for the benefit of senior citizens, disabled persons, or veterans (“protected persons”), as those are defined, to redress unfair or deceptive acts or practices or unfair methods of competition, to consider the following factors in addition to other appropriate factors in determining the amount of a fine, civil penalty or other penalty, or other remedy to impose whenever the trier of fact is authorized by statute to impose a fine, penalty, or any other remedy the purpose or effect of which is to punish or deter and the amount of the fine, penalty, or remedy is subject to the trier of fact’s discretion:
- Whether the defendant knew or should have known that their conduct was directed to one or more protected persons.
- Whether the defendant’s conduct caused one or more protected persons to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the protected person.
- Whether one or more protected persons are substantially more vulnerable than other members of the public to the defendant’s conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (Civ. Code § 3345.)
- Authorizes the trier of fact, when it makes an affirmative finding in regard to the specified factors above, to impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding. (Civ. Code § 3345.)
- Provides that upon the declaration of a state of emergency or local emergency resulting from specified crises, including earthquakes, floods, fires, and other disasters, and for a period following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell specified goods and services, such as consumer food items, goods or services used for emergency cleanup, emergency supplies, building materials, housing, gasoline or repair or reconstruction services for a price of more than 10 percent above the price charged immediately prior to the proclamation of emergency. (Penal (Pen.) Code § 396.)
This bill:
- Provides that, in addition to any liability for a civil penalty pursuant to Section 17206, a person who violates the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, shall be liable for a civil penalty not to exceed $2,500 for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
- Makes it unlawful pursuant to the CLRA to engage in a violation of Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
- Adds persons displaced due to a state of emergency or a local emergency, as defined, to the protected persons eligible for enhanced remedies pursuant to Section 3345.
- Updates Section 396 to explicitly define and prohibit “price gouging” and reworks the provisions governing extensions of the relevant periods in which the section is in effect. It states that Section 396 applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
- Places a series of obligations on housing listing platforms, as provided, including requiring specified policies and reporting mechanisms to be established.
- Requires the policies and mechanism required of platforms to be publicly posted and readily accessible to users.
- Defines a “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
- Provides that a search warrant may be issued when the property or things to be seized consist of evidence that tends to show that a price gouging violation, as specified in Section 396, has occurred or is occurring.
Background
The aftermath of an emergency, such as a natural disaster or other crisis, represents a uniquely vulnerable period for affected communities, characterized by significant emotional, physical, and economic challenges. During these critical moments, victims are particularly susceptible to predatory business practices and fraudulent schemes that can exacerbate their existing hardships.
Survivors often face immediate pressures to secure housing, replace essential goods, and initiate reconstruction efforts, all while managing limited financial resources. Unscrupulous actors frequently exploit this vulnerability through price gouging—dramatically increasing the cost of essential goods and services during emergency periods. Comprehensive legal protections are essential to mitigate these risks and ensure equitable recovery for disaster-impacted populations.
This bill, a part of the Senate’s Golden State Commitment legislative package to strengthen wildfire recovery, bolsters protections for those affected by wildfires and other crises in the state. It does so by reinforcing laws aimed at preventing price gouging and other predatory practices targeting consumers affected by emergencies. It also enlists online housing listing platforms to help root out such practices in the housing stock in the wake of a disaster. The bill is author-sponsored. It is supported by various consumer advocacy groups, including Consumer Watchdog. No timely opposition was received.
Comments
According to the authors:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunists to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
SB 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- Department of Justice (DOJ) and local prosecutors: Workload cost pressures (Unfair Competition Law Fund, General Fund, local funds) to the DOJ and local prosecutors of an unknown but potentially significant amount. If state and local prosecutors file civil enforcement actions as authorized by this bill it will result in a significant workload increase.
- Trial Courts: Unknown, potentially significant cost to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional civil and criminal actions.
- State and Local Law Enforcement Agencies: Workload costs pressures to state and local law enforcement agencies (General Funds, local funds) of an unknown, but potentially significant amount to respond to and investigate alerts about price listings on the housing listing platforms that violate the price gouging statute.
- Local Incarceration and Supervision: Unknown, potentially significant costs (local funds, General Fund) to the counties to incarcerate people for the crimes expanded by this bill.
SUPPORT: (Verified 5/22/25)
Consumer Attorneys of California
Consumer Watchdog
TechEquity Action
OPPOSITION: (Verified 5/22/25)
None received
ARGUMENTS IN SUPPORT: Consumer Watchdog writes in support:
While emergency declarations prohibited excessive rent increases in Los Angeles County, dishonest property owners exploited a loophole by listing rental properties at exorbitant rates in neighboring counties such as Orange County, where no emergency had been declared. This practice obstructed enforcement efforts and placed further hardship on displaced families in desperate need of shelter.
Consumer Watchdog supports SB 36 because it strengthens consumer protections by increasing penalties for price gouging and requiring online housing platforms to enforce fair pricing policies, report violations, and provide mechanisms for consumer complaints. It empowers displaced individuals to take legal action, grants courts the authority to award damages, and enhances prosecutorial tools to investigate and address housing-related price gouging. Additionally, it extends protections to counties within a 50-mile radius of an affected area, preventing exploitation in nearby markets.
Prepared by: Christian Kurpiewski / JUD. / (916) 651-4113
5/27/25 11:39:47
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2025 - 2026 Regular Session
SB 36 (Umberg) - Price gouging: state of emergency
Version: February 24, 2025 | Policy Vote: JUD. 10 - 0, PUB. S. 5 - 1 |
Urgency: No | Mandate: No |
Hearing Date: May 23, 2025 | Consultant: Liah Burnley |
Bill Summary:
SB 36 establishes requirements for housing listing platforms related to price gouging and expands civil and criminal penalties related to price gouging during a state of emergency.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 23, 2025
Fiscal Impact:
- Department of Justice (DOJ) and local prosecutors: Workload cost pressures (Unfair Competition Law Fund, General Fund, local funds) to the DOJ and local prosecutors of an unknown but potentially significant amount. If state and local prosecutors file civil enforcement actions as authorized by this bill it will result in a significant workload increase.
- Trial Courts: Unknown, potentially significant cost to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional civil and criminal actions.
- State and Local Law Enforcement Agencies: Workload costs pressures to state and local law enforcement agencies (General Funds, local funds) of an unknown, but potentially significant amount to respond to and investigate alerts about price listings on the housing listing platforms that violate the price gouging statute.
- Local Incarceration and Supervision: Unknown, potentially significant costs (local funds, General Fund) to the counties to incarcerate people for the crimes expanded by this bill.
Committee Amendments:
- Specify that a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, must, among other things, alert remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions.
- Require a housing listing platform to establish and maintain a policy information persons searching for rental housing that listings are prohibited from violating the price gouging statute, and how to report listing.
- Require housing listing platforms to provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes and related timelines for response.
- Strike the provisions requiring the platforms to have a mechanism for the platform and law enforcement to communicate in a timely manner.
- Define state of emergency, and local emergency, as specified.
-- END --
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2025 - 2026 Regular Session
SB 36 (Umberg) - Price gouging: state of emergency
Version: February 24, 2025 | Policy Vote: JUD. 10 - 0, PUB. S. 5 - 1 |
Urgency: No | Mandate: No |
Hearing Date: May 5, 2025 | Consultant: Liah Burnley |
Bill Summary:
SB 36 expands civil and criminal penalties related to price gouging during a state of emergency.
Fiscal Impact:
- Department of Justice (DOJ) and local prosecutors: Workload cost pressures (Unfair Competition Law Fund, General Fund, local funds) to the DOJ and local prosecutors of an unknown but potentially significant amount. If state and local prosecutors file civil enforcement actions as authorized by this bill it will result in a significant workload increase. DOJ’s Consumer Protection Section, within the Public Rights Division, could see an increase in workload in investigating and prosecuting of violations of the Unfair Competition Law under this bill and would likely require additional attorneys and legal support staff.
- Trial Courts: Unknown, potentially significant cost to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional civil and criminal actions. By creating a new a private cause of action with increased damages, and authorizing a new civil penalty with statutory damages, this bill may lead to additional civil cases. By expanding this criminal price gouging statute, this bill could leads to more criminal charges. In such cases, defendants are constitutionally guaranteed certain rights during criminal proceedings, including the right to a jury trial and the right to counsel (at public expense if the defendants are unable to afford the costs of representation). Additionally, this bill would increase court workloads by expanding the available grounds for law enforcement to apply to the court for warrants relating to price gouging.
Expanding civil penalties and crimes could lead to lengthier and more complex court proceedings with attendant workload and resource costs to the court. The fiscal impact of this bill to the courts will depend on many unknown factors, including the number of cases filed and the factors unique to each case. An eight-hour court day costs approximately $10,500 in staff in workload. If court days exceed 10, costs to the trial courts could reach hundreds of thousands of dollars. In 2023–24, over 4.8 million cases were filed statewide in the superior courts. Filings increased over the past year, driven mostly by misdemeanors and infractions, and civil limited cases. The increase in filings from the previous year is greater than 5% for civil limited and unlimited, appellate division appeals, juvenile delinquency, misdemeanors and infractions, and probate. While the courts are not funded on a workload basis, an increase in workload could result in delayed court services and would put pressure on the General Fund to fund additional staff and resources and to increase the amount appropriated to backfill for trial court operations. The Governor’s 2025-26 budget proposes a $40 million ongoing increase in discretionary funding from the General Fund to help pay for increased trial court operation costs beginning in 2025-26.
- State and Local Law Enforcement Agencies: Workload costs pressures to state and local law enforcement agencies (General Funds, local funds) of an unknown, but potentially significant amount to respond to and investigate alerts about price listings on the housing listing platforms that violate the price gouging statute.
- Local Incarceration and Supervision: Unknown, potentially significant costs (local funds, General Fund) to the counties to incarcerate people for the crimes expanded by this bill. The average annual cost to incarcerate one person in county jail is approximately $77,252 per year. Actual incarceration costs to counties will depend on the number of convictions and the length of each sentence. Although county incarceration costs are generally not considered reimbursable state mandates pursuant to Proposition 30 (2012), overcrowding in county jails creates cost pressure on the General Fund because the state has historically granted new funding to counties to offset overcrowding resulting from 2011 public safety realignment. In addition, there will be potentially significant cost pressures (local funds) to county probation departments of an unknown, but potentially significant amount, if individuals convicted of the crimes in this bill are supervised locally in the community in lieu of or in addition to incarceration. In each criminal case, county probation departments conduct investigations to provide presentencing reports to the courts after a conviction, supervise people in the community to ensure they comply with the terms of their supervision, and refer people to programs intended to help them avoid committing new crimes and improve their lives. This bill would create workload and costs pressures for probation departments, namely ensuring the defendant attends the required court ordered counseling. Annual supervision costs could range from approximately $4,000 to $15,000 per person. Actual costs would depend on the cost of supervision by each county probation department and how many individuals are granted probation, mandatory supervision or post release community supervision for the offense. To the extent that defendants are able to avail themselves to drug courts, collaborative courts, and diversion programs as a result of a charge under this bill, there will be corresponding increases in workload and costs pressures to probation, county behavioral health services, district attorneys, and public defenders.(See staff comments)
Background:
Price gouging occurs when person selling retail goods or services increases prices significantly after a natural disaster or other state of emergency. Existing law prohibits a selling or offering to sell certain goods or services for a price more than 10% greater than the price charged immediately prior to a declared state of emergency. Specifically, this prohibition applies when the president of the United States or the governor proclaims a state of emergency or when the executive officer of a county or city declares a local emergency. Currently, price gouging is prohibited for 30 or 180 days after an emergency is declared, depending on the goods or services at issue, but an extension of the price gouging protections can be declared by executive order. A violation of the prohibition is punishable as a misdemeanor by up to one year in county jail or a fine of $10,000, or by both. Price gouging is also an unlawful business practice that can be civilly enforced by specified public prosecutors or through a private right of action.
Proposed Law:
This bill does all of the following:
- Civil Penalties:
- Establishes an additional civil penalty for acts of unfair completion against a person displaced due to a state of emergency.
- Specifies that the civil penalty is up to $2,500 for each violation.
- Provides that, if the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund.
- Provides that, if the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered.
- Provides that, if the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to
- Specifies that the funds shall be for the exclusive use by the Attorney General, the district attorney, the county counsel, and the city attorney for the enforcement of consumer protection laws.
- Expands the Unfair Competition Law (UCL) to include violations of the criminal price gouging statute during a state of emergency or local emergency.
- Establishes increased treble damages of up to three times greater the amount of damages awarded in actions to redress unfair or deceptive acts of competition if the person was displaced due to a state of emergency or a local emergency.
- Establishes an additional civil penalty for acts of unfair completion against a person displaced due to a state of emergency.
- Search Warrants:
- Adds to the list of grounds that a search warrant may be issued to include when the property or things to be seized consists of evidence that tends to show that a price gouging violation during a state of emergency has occurred or is occurring.
- Criminal Price Gouging Statute, Penal Code § 396:
- Substantially expands the price gouging statute to cover all counties in the proclamation or declaration of emergency and all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
- Defines “Price gouging” as the unlawful conduct of charging higher or greater prices upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, and for a period of 30 days following that proclamation or declaration, including:
- Any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10 percent greater than the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency, or prior to a date set in the proclamation or declaration;
- For a period of 180 days following that proclamation or declaration, any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10 percent above the price charged by that person for those services immediately prior to the proclamation or declaration of emergency;
- To increase a hotel or motel’s regular rates, as advertised immediately prior to the proclamation or declaration of emergency, by more than 10 percent;
- To increase the rental price, advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10 percent; and,
- To evict any residential tenant of residential housing and rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged.
- HOUSING LISTING PLATFORMS:
- Requires a housing listing platform to do all of the following:
- Alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates the criminal price gouging statute;
- Establish and maintain a policy informing a person that listings are prohibited from violating the criminal price gouging statute, and that failure to comply may include consequences including, but not limited to, suspension or termination of the person’s account;
- Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated the criminal price gouging statute;
- Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes; and,
- Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent price gouging.
- Requires the policy and mechanism to be publicly posted and readily accessible to users.
- Defines “housing listing platform” as “an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer”.
- Requires a housing listing platform to do all of the following:
Related Legislation:
- SB 368 (Smallwood Cuevas) requires the DOJ and local district attorneys to establish partnerships to enforce price gouging. SB 368 is pending in this Committee.
- AB 380 (M. Gonzalez) extends the duration of specified price gouging protections during a state of emergency. AB 380 is pending on the Assembly Appropriations Committee Suspense File.
Staff Comments: Mass incarceration in California did not occur in a vacuum; it was the result of decades of cumulative policy decisions—often well-intentioned on their own—that collectively expanded the scope and severity of the criminal justice system. Although individual pieces of legislation like this bill, and many others introduced this legislative session, may appear narrow or incremental, their combined effect will significantly increase incarceration rates. California has a well-documented history of prison overcrowding, which culminated in federal court intervention and a U.S. Supreme Court ruling in Brown v. Plata (2011) that found the state’s prison conditions unconstitutional due to severe overcrowding. Returning to such conditions would undermine fiscal sustainability, public safety, and rehabilitation goals.
-- END --
SENATE COMMITTEE ON PUBLIC SAFETY
Senator Jesse Arreguín, Chair
2025 - 2026 Regular
Bill No: SB 36 Hearing Date: April 22, 2025
Author: | Umberg | ||
Version: | February 24, 2025 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | SU | ||
Subject: Price gouging: state of emergency
HISTORY
Source: Author
Prior Legislation: SB 1133 (Archuleta), held in Senate Appropriations Committee, 2022
SB 1212 (Caballero), held in Senate Judiciary Committee, 2022
AB 3023 (Gabriel), held in Assembly Public Safety Committee, 2020
SB 1196 (Umberg), Chapter 339, Statutes of 2020
AB 1919 (Wood), Chapter 631, Statutes of 2018
Support: Consumer Attorneys of California; Consumer Federation of California; Consumer protection Policy Center; Consumer Watchdog; Techequity Action
Opposition: California Public Defenders Association
PURPOSE
The purpose of this bill is to allow the issuance of a warrant for the misdemeanor crime of price gouging and to expand the territory to which the crime of price gouging applies to include all adjacent counties to the county affected by the emergency as well as all counties within a 50-mile radius.
Existing law contains legislative findings that during a state of emergency or local emergency, including, resulting from natural or manmade disasters, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. (Pen. Code, § 396, subd. (a).)
Existing law prohibits, for 30 days following a proclamation or declaration of emergency, the sale, or offer to sell, any consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price of more than 10% greater than the price charged before the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (b).)
Existing law prohibits, for 180 days following a proclamation or declaration of emergency, a contractor from selling or offering to sell any repair or reconstruction services or any services used in emergency cleanup for a price of more than 10% greater than the price charged before the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (c).)
Existing law prohibits, for 30 days following a proclamation or declaration of emergency, an owner or operator of a hotel or motel from increasing the hotel or motel’s regular rates more than 10% than the price charged before the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (d).)
Existing law prohibits, for 30 days following an official proclamation or declaration of emergency, the increase of rental price advertised, offered, or charged for housing, to an existing or prospective tenant for more than 10% than the price charged before the proclamation or declaration of emergency. (Pen. Code, § 396, subd. (e).)
Existing law prohibits, for 30 days following an official proclamation or declaration of emergency, a landlord from evicting a tenant and renting or offering to rent to another person at a rental price greater than the evicted tenant could be charged, unless the eviction process began prior to the emergency proclamation or declaration. (Pen. Code, § 396, subd. (f).)
Existing law allows extension of price gouging prohibitions for additional periods beyond the initial 30 days or 180 days of a proclamation or declaration of emergency if deemed necessary to protect the lives, property, or welfare of citizens. (Pen. Code, § 396, subd. (g).)
Existing law punishes price gouging as a misdemeanor with imprisonment in a county jail for a period not exceeding one year, by a fine of not more than $10,000, or by both. (Pen. Code, § 396, subd. (h).)
Existing law provides that violations of the price gouging restrictions constitute unlawful business practices and potentially subject violators to injunctions and other remedies, as defined. (Pen. Code, § 396, subd. (i).)
This bill defines “price gouging” as “the unlawful conduct of charging higher or greater prices” as specified.
This bill expands application of price gouging to not only all counties in the proclamation or declaration of emergency, but also to all counties adjacent to, and counties within a 50-mile radius of, the counties in the proclamation or declaration of emergency.
This bill clarifies that an extension of the price gouging protections authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it an end.
Existing law provides that the right of the people to be secure in their persons, houses, papers, and effects against unreasonable seizures and searches may not be violated; and a warrant may not issue except on probable cause, supported by oath or affirmation, particularly describing the place to be searched and the persons and things to be seized. (U.S. Const., Amend. IV; Cal. Const., art. I, § 13.)
Existing law defines a “search warrant” as a written order in the name of the people, signed by a magistrate, directed to a peace officer, commanding him or her to search for a person or persons, a thing or things, or personal property, and, in the case of a thing or things or personal property, bring the same before the magistrate. (Pen. Code, § 1523.)
Existing law authorizes a search warrant to be issued upon any of the following grounds:
- When the property was stolen or embezzled.
- When the property or things were used as the means of committing a felony.
- When the property or things are in the possession of any person with the intent to use them as a means of committing a public offense, or in the possession of another to whom he or she may have delivered them for the purpose of concealing them or preventing them from being discovered.
- When the property or things to be seized consist of any item or constitute any evidence that tends to show a felony has been committed, or tends to show that a particular person has committed a felony.
- When the property or things to be seized consist of evidence that tends to show that sexual exploitation of a child, or possession of matter depicting sexual conduct of a person under the age of 18 years, has occurred or is occurring.
- When there is a warrant to arrest a person.
- When a provider of electronic communication service or remote computing service has records or evidence, showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of any person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom he or she may have delivered them for the purpose of concealing them or preventing their discovery.
- When a provider of electronic communication service or remote computing service has records or evidence showing that property was stolen or embezzled constituting a misdemeanor, or that property or things are in the possession of any person with the intent to use them as a means of committing a misdemeanor public offense, or in the possession of another to whom he or she may have delivered them for the purpose of concealing them or preventing their discovery.
- When the property or things to be seized include an item or any evidence that tends to show a violation of the Labor Code, as specified.
- When the property or things to be seized include a firearm or any other deadly weapon at the scene of, or at the premises occupied or under the control of the person arrested in connection with, a domestic violence incident involving a threat to human life or a physical assault.
- When the property or things to be seized include a firearm or any other deadly weapon that is owned by, or in the possession of, or in the custody or control of, a person described in subdivision (a) of Section 8102 of the Welfare and Institutions Code.
- When the property or things to be seized include a firearm that is owned by, or in the possession of, or in the custody or control of, a person who is subject to the prohibitions regarding firearms under specified provisions of the Family Code.
- When the information to be received from the use of a tracking device constitutes evidence that tends to show that either a felony or a misdemeanor violation of the Fish and Game Code, or a misdemeanor violation of the Public Resources Code.
- When a sample of the blood of a person constitutes evidence that tends to show a violation of misdemeanor driving under the influence and the person from whom the sample is being sought has refused an officer's request to submit to, or has failed to complete, a blood test.
- When the property or things to be seized are firearms or ammunition or both that are owned by, in the possession of, or in the custody or control of a person who is the subject of a gun violence restraining order. This final provision does not go into effect until January 1, 2016;
- When the property or things to be seized are controlled substances or a device, contrivance, instrument or paraphernalia used for unlawfully administering a controlled substance as provided.
- When the warrant is for a blood sample of a person that tends to show a violations related to the operation of a vessel, or manipulating water skis, an aquaplane, or a similar device, while under the influence of alcohol or drugs.
- When the property or things to be seized consist of evidence that tends to show that a violation of the crime of disorderly conduct related to invasion of privacy has occurred or is occurring.
- When the property or things to be seized are data, from a recording device installed by the manufacturer of a motor vehicle, that constitutes evidence that tends to show the commission of a felony or misdemeanor offense involving a motor vehicle, resulting in death or serious bodily injury to any person.
- When the property or things to be seized consists of evidence that tends to show unlawful photographing of a deceased person by a first responder has occurred or is occurring. (Pen. Code, § 1524, subd. (a).)
Existing law provides that a search warrant cannot be issued but upon probable cause, supported by affidavit, naming or describing the person to be searched or searched for, and particularly describing the property, thing, or things and the place to be searched. (Pen. Code, § 1525.)
Existing law requires a magistrate to issue a search warrant if he or she is satisfied of the existence of the grounds of the application or that there is probable cause to believe their existence. (Pen. Code, § 1528, subd. (a).)
This bill expands the statutory authority for the issuance of a warrant to include the misdemeanor crime of price gouging.
This bill requires a housing listing platform, as defined, to do all of the following:
- Alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates the price gouging statute.
- Establish and maintain a policy informing a person that listings are prohibited from violating the price gouging statute, and that failure to comply may include consequences including, but not limited to, suspension or termination of the person’s account.
- Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
- Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes.
- Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent price gouging.
- Publicly posted these policies and mechanisms.
This bill provides that, in addition to any liability for a civil penalty pursuant to Section 17206, a person who violates the Unfair Competition Law, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, shall be liable for a civil penalty not to exceed $2,500 for each violation.
COMMENTS
- Need for This Bill
According to the author:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunist to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
SB 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
- Price Gouging Provisions
Price gouging occurs when person selling retail goods or services increases prices significantly after a natural disaster or other state of emergency. Existing law prohibits a selling or offering to sell certain goods or services for a price more than 10% greater than the price charged immediately prior to a declared state of emergency. Specifically, this prohibition applies when the president of the United States or the governor proclaims a state of emergency or when the executive officer of a county or city declares a local emergency. Currently, price gouging is prohibited for 30 or 180 days after an emergency is declared, depending on the goods or services at issue, but an extension of the price gouging protections can be declared by executive order. A violation of the prohibition is punishable as a misdemeanor by up to one year in county jail or a fine of $10,000, or by both. Price gouging is also an unlawful business practice that can be civilly enforced by specified public prosecutors or through a private right of action.
This bill expands the territory of a price gouging prohibition to not only the county, city, or city and county affected by the proclamation or declaration of emergency but also to all adjacent counties and counties within a 50-mile radius of the affected county. Depending on the county affected, the geographic area proposed by this bill can be staggering. For example, Los Angeles County is one of the nation’s largest counties, encompassing 4,084 square miles. (https://lacounty.gov/government/about-la-county/about/ [as of April 6, 2025].) Adjacent counties include Ventura County (2,208 square miles)[1], Kern County (8,161 square miles)[2], San Bernardino County (20,160 square miles)[3], and Orange County (948 square miles)[4]. The total area covered here is 35,561 square miles- that is roughly 1/5 of the size of California, which is 163,695 square miles in total.[5] By comparison, the states of West Virginia, Maryland, Hawaii, Massachusetts, Vermont, New Hampshire, New Jersey, Connecticut, Delaware are all smaller in size than the area which would be covered under this example.[6] Given how expansive this territory can be, depending on the county, should this bill be amended to limit the geographical expansion to a set amount of miles beyond the county borders?
As noted above, price gouging protections usually last for a specified period of days, depending on the good or services sold. However, price gouging protections can be extended by executive order. For example, on March 7, 2025, Governor Newsom extended price gouging protections in response to the fires in Los Angeles. (https://www.gov.ca.gov/2025/03/07/governor-newsom-extends-protections-for-la-firestorm-survivors/ [as of April 9, 2025].) This bill provides that an extension by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end.
- Search Warrant Provision
Both the United States and the California Constitutions guarantee the right of all persons to be secure from unreasonable searches and seizures. (U.S. Const., amend. IV; Cal. Const., art. 1, sec. 13.) This protection applies to all unreasonable government intrusions into legitimate expectations of privacy. (United States v. Chadwick (1977) 433 U.S. 1, 7, overruled on other grounds by California v. Acevedo (1991) 500 U.S. 565.) In general, a search is not valid unless it is conducted pursuant to a warrant. A search warrant may not be issued without probable cause. "Reasonable and probable cause exists if a man of ordinary care and prudence would be led to conscientiously entertain an honest and strong suspicion that the accused is guilty." (People v. Alvarado (1967) 250 Cal.App.2d 584, 591.) The mere reasonableness of a search, assessed in light of the surrounding circumstances, is not a substitute for the warrant required by the Constitution. (Arkansas v. Sanders (1979) 442 U.S. 753, 758, overruled on other grounds by California v. Acevedo, supra.) There are exceptions to the warrant requirement, but the burden of establishing an exception is on the party seeking one. (Arkansas v. Sanders (1979) 442 U.S. 753, 760, overruled on other grounds by California v. Acevedo, supra.)
Penal Code section 1524 provides the statutory grounds for the issuance of warrants. Under these provisions, a search warrant may be issued for a variety of reasons, some being as broad as “[w]hen property or things were used as the means to commit a felony.” (Pen. Code, § 1524, subd. (a)(2).) There are other enumerated circumstances that authorize a search warrant regardless of whether the crime was a felony or misdemeanor, such as "[w]hen the property subject to search was stolen or embezzled." (Pen. Code, § 1524, subd. (a)(1).) Additionally, Penal Code section 1524 provides that a search warrant may be issued “[w]hen the property or things are in the possession of any person with the intent to use them as a means of committing a public offense....” (Pen. Code, § 1524, subd. (a)(3).) A “public offense” is defined as crimes which include felonies, misdemeanors, and infractions. (Pen. Code, § 16.)
This bill would expand that statutory authority for search warrants by allowing law enforcement to obtain a search warrant on the grounds that the property or things to be seized consists of evidence that tends to show that a violation of Penal Code Section 396 (price gouging) has occurred or is occurring. The background information provided by the author does not discuss the need for this expansion.
Both the Attorney General and local prosecutors have recently filed charges against individuals suspected of price gouging in the aftermath of the Los Angeles fires. The Attorney General’s most recent press release alerting consumers about price gouging restrictions states, “In addition to sending over 700 warning letters to hotels and landlords, the California Department of Justice has several active investigations into price gouging.” (See Attorney General Bonta Issues Consumer Alert Following Extension of Price Gouging Protections Until July 1, 2025, March 7, 2025, https://oag.ca.gov/news/press-releases/attorney-general-bonta-issues-consumer-alert-following-extension-price-gouging [as of April 9, 2025].) In several other press releases, the Attorney General’s Office announced the filing of charges against individuals suspected to have engaged in price gouging. (See e.g., Attorney General Bonta Files Charges Against a Southern California Real Estate Agent for Price Gouging Eaton Fire Victims, January 22, 2025, https://oag.ca.gov/news/press-releases/attorney-general-bonta-files-charges-against-southern-california-real-estate#:~:text=As%20part%20of%20Attorney%20General,been%20accused%20of%20price%20gouging; Attorney General Bonta Charges Second Los Angeles Realtor for Price Gouging Victims of Eaton Fire, January 28, 2025, https://oag.ca.gov/news/press-releases/attorney-general-bonta-charges-second-los-angeles-realtor-price-gouging-victims; Attorney General Bonta Files Charges Against Los Angeles Real Estate Agent, Landlord for Price Gouging in Wake of Eaton Fire, February 18, 2025, https://oag.ca.gov/news/press-releases/attorney-general-bonta-files-charges-against-los-angeles-real-estate-agent [as of April 9, 2025].) Similarly, the Los Angeles City Attorney recently filed both a criminal and civil action against a global rental corporation who is to have alleged in price gouging after the Los Angeles fires. (See LA City Attorney Hydee Feldstein Soto Files Civil Suit and Criminal Charges to Fight Price Gouging in Wake of LA Wildfires, February 4, 2025, https://cityattorney.lacity.gov/updates/la-city-attorney-hydee-feldstein-soto-files-civil-suit-and-criminal-charges-fight-price [as of April 9, 2025].) As such, it is unclear that that expanding the authority to obtain a search warrant to investigate this misdemeanor crime is necessary. Moreover, another provision of this bill requires housing listing platforms to “alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates” the price gouging statute.
- Related Legislation
There have been several bills introduced this legislative session related to price gouging. SB 368 (Smallwood Cuevas) requires the Department of Justice and local district attorneys to establish partnerships to enforce. SB 368 will be heard in this committee today. AB 380 (M. Gonzalez) extends the duration of specified price gouging protections, from the first 30 or 180 days after a state of emergency is declared to the full duration of the state of emergency, and adds protections against price gouging involving commercial real property. AB 380 is pending in the Assembly Appropriations Committee and was referred to the suspense file.
- Argument in Support
According to the Consumer Attorneys of California:
The recent fires in Southern California have underscored a serious problem—unscrupulous actors exploiting vulnerable residents by drastically inflating the cost of housing and lodging. Victims already displaced by disasters are being further harmed by price gouging that often amounts to thousands of dollars above standard rental rates.
SB 36 addresses this urgent issue by improving enforcement tools and expanding consumer protections. Specifically, the bill:
• Increases civil penalties for those who take advantage of displaced victims;
• Allows victims to bring their own legal actions and seek additional damages;
• Requires online housing platforms to alert law enforcement, adopt user policies, and offer reporting mechanisms for price gouging violations;
• Grants public prosecutors warrant authority to investigate housing-related price gouging;
• Expands price gouging protections to include counties within a 50-mile radius of the affected area.
These measures represent a comprehensive and necessary response to ensure that Californians are not exploited during their most vulnerable moments. SB 36 will empower both law enforcement and individual consumers to hold bad actors accountable, while setting a higher standard of corporate responsibility during emergencies.
- Argument in Opposition
According to the California Public Defenders Association:
The portion of the bill we object to is new subdivision (23) of Penal Code section 1524, which covers the issuance of search warrants. Subdivision 23 would be added to allow the issuance of a search warrant “When the property or things to be seized consists of evidence that tends to show that a price gouging violation, as specified in subdivision (d), (e), or (f) of Section 396, has occurred or is occurring.”
As of 1991, Penal Code section 1524 was a relatively focused section authorizing the issuance of search warrant in only 5 instances. Those five instances, however, were very broad, covering all stolen or embezzled property, all felonies, child pornography, as well as a provision broadly allowing warrants to issue for evidence of property that is the means of committing a “public offense.”
Penal Code section 1524 has wildly expanded and now has 21 subdivisions describing when search warrants may issue. This bill adds yet one more. This continued expansion is concerning.
The current bill may prove to be unnecessary. Although price gouging is a misdemeanor, it may well be that a bad actor does not limit this type of theft to misdemeanor values, but instead ventures into felony grand theft territory. Under current law, a search warrant may issue for evidence relating to a felony.
-- END –
https://www.ventura.org/county-executive-office/about-us/ [as of April 9, 2025]. ↑
https://maps.apple.com/place?address=Kern%20County%2C%20CA%2C%20United%20States&coordinate=35.3466288%2C-118.7295064&name=Kern%20County&auid=5609905159221694280&lsp=7618 [as of April 9, 2025]. ↑
https://selectsbcounty.com/county-snapshot [as of April 9, 2025]. ↑
https://maps.apple.com/place?address=Orange%20County%2C%20CA%2C%20United%20States&coordinate=33.6756872%2C-117.7772068&name=Orange%20County&auid=16450146479720451860&lsp=7618 [as of April 9, 2025.] ↑
https://www.worldatlas.com/geography/us-states-by-size.html [as of April 9, 2025]. ↑
Ibid. ↑
Senator Thomas Umberg, Chair
2025-2026 Regular Session
Bill No: SB 36 (Author:Umberg, Smallwood-Cuevas)
Version: February 24, 2025
Hearing Date: April 8, 2025
Fiscal: Yes
Urgency: No
Consultant: CK
SUBJECT
Price gouging: state of emergency
DIGEST
This bill strengthens the laws protecting those affected by wildfires and other emergencies in the state, including from price gouging.
EXECUTIVE SUMMARY
The aftermath of an emergency, such as a natural disaster or other crisis, represents a uniquely vulnerable period for affected communities, characterized by significant emotional, physical, and economic challenges. During these critical moments, victims are particularly susceptible to predatory business practices and fraudulent schemes that can exacerbate their existing hardships.
Survivors often face immediate pressures to secure housing, replace essential goods, and initiate reconstruction efforts, all while managing limited financial resources. Unscrupulous actors frequently exploit this vulnerability through price gouging—dramatically increasing the cost of essential goods and services during emergency periods. Comprehensive legal protections are essential to mitigate these risks and ensure equitable recovery for disaster-impacted populations.
This bill, a part of the Senate’s Golden State Commitment legislative package to strengthen wildfire recovery, bolsters protections for those affected by wildfires and other crises in the state. It does so by reinforcing laws aimed at preventing price gouging and other predatory practices targeting consumers affected by emergencies. It also enlists online housing platforms to help root out such practices in the housing stock in the wake of a disaster. The bill is author-sponsored. It is supported by Consumer Watchdog. No timely opposition was received by the Committee. Should the bill pass out of this Committee, it will next be heard in the Senate Public Safety Committee.
PROPOSED CHANGES TO THE LAW
Existing law:
- Establishes the Unfair Competition Law (UCL), which provides a statutory cause of action for any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. (Bus. & Prof. Code § 17200 et seq.)
- Defines “unfair competition” to mean and include any unlawful, unfair, or fraudulent business act or practice and any unfair, deceptive, untrue, or misleading advertising, and any act prohibited by the False Advertising Law (FAL), Business and Professions Code section 17500 et seq. (Bus. & Prof. Code § 17200.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. (Bus. & Prof. Code § 17203.)
- Requires actions for relief pursuant to the UCL be prosecuted exclusively in a court of competent jurisdiction and only by the following:
- the Attorney General;
- a district attorney;
- a county counsel authorized by agreement with the district attorney in actions involving violation of a county ordinance;
- a city attorney of a city having a population in excess of 750,000;
- a county counsel of any county within which a city has a population in excess of 750,000;
- a city attorney in a city and county;
- a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association with the consent of the district attorney; or
- a person who has suffered injury in fact and has lost money or property as a result of the unfair competition. (Bus. & Prof. Code § 17204.)
- Provides that any person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty not to exceed $2,500 for each violation. The court shall impose a civil penalty for each violation. In assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (Bus. & Prof. Code § 17206.)
- Establishes the Consumer Legal Remedies Act (CLRA), which prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. (Civ. Code § 1750 et seq.)
- Provides that any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 of the Civil Code may bring an action against that person to recover or obtain any of the following:
- actual damages, but in no case shall the total award of damages in a class action be less than $1,000;
- an order enjoining the methods, acts, or practices;
- restitution of property;
- punitive damages;
- court costs and attorney’s fees to a prevailing plaintiff. However, reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith; and
- any other relief that the court deems proper. (Civ. Code § 1780(a), (e).)
- Requires the trier of fact, when an action is brought on behalf of or for the benefit of senior citizens, disabled persons, or veterans (“protected persons”), as those are defined, to redress unfair or deceptive acts or practices or unfair methods of competition, to consider the following factors in addition to other appropriate factors in determining the amount of a fine, civil penalty or other penalty, or other remedy to impose whenever the trier of fact is authorized by statute to impose a fine, penalty, or any other remedy the purpose or effect of which is to punish or deter and the amount of the fine, penalty, or remedy is subject to the trier of fact’s discretion:
- Whether the defendant knew or should have known that their conduct was directed to one or more protected persons.
- Whether the defendant’s conduct caused one or more protected persons to suffer: loss or encumbrance of a primary residence, principal employment, or source of income; substantial loss of property set aside for retirement, or for personal or family care and maintenance; or substantial loss of payments received under a pension or retirement plan or a government benefits program, or assets essential to the health or welfare of the protected person.
- Whether one or more protected persons are substantially more vulnerable than other members of the public to the defendant’s conduct because of age, poor health or infirmity, impaired understanding, restricted mobility, or disability, and actually suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (Civ. Code § 3345.)
- Authorizes the trier of fact, when it makes an affirmative finding in regard to the specified factors above, to impose a fine, civil penalty or other penalty, or other remedy in an amount up to three times greater than authorized by the statute, or, where the statute does not authorize a specific amount, up to three times greater than the amount the trier of fact would impose in the absence of that affirmative finding. (Civ. Code § 3345.)
- Provides that upon the declaration of a state of emergency or local emergency resulting from specified crises, including earthquakes, floods, fires, and other disasters, and for a period following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell specified goods and services, such as consumer food items, goods or services used for emergency cleanup, emergency supplies, building materials, housing, gasoline or repair or reconstruction services for a price of more than 10 percent above the price charged immediately prior to the proclamation of emergency. (Pen. Code § 396.)
This bill:
- Provides that, in addition to any liability for a civil penalty pursuant to Section 17206, a person who violates the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, shall be liable for a civil penalty not to exceed $2,500 for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206.
- Makes it unlawful pursuant to the CLRA to engage in a violation of Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
- Adds persons displaced due to a state of emergency or a local emergency, as defined, to the protected persons eligible for enhanced remedies pursuant to Section 3345.
- Updates Section 396 to explicitly define and prohibit “price gouging” and reworks the provisions governing extensions of the relevant periods in which the section is in effect. It states that Section 396 applies to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency.
- Requires a housing listing platform to do all of the following:
- Alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates Section 396 of the Penal Code.
- Establish and maintain a policy informing a person that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the person’s account.
- Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
- Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes.
- Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent price gouging.
- Requires the policy and mechanism required hereby to be publicly posted and readily accessible to users.
- Defines a “housing listing platform” as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer.
- Provides that a search warrant may be issued when the property or things to be seized consist of evidence that tends to show that a price gouging violation, as specified in Section 396, has occurred or is occurring.
COMMENTS
- California’s consumer protection laws
The Legislature has long considered consumer protection to be a matter of high importance. State law is replete with statutes aimed at protecting California consumers from unfair, dishonest, or harmful market practices. These consumer-protection laws authorize public prosecutors to take action against those responsible, but also empower consumers to enforce their own rights and seek remedies to make them whole.
The UCL (Bus. & Prof. Code § 17200) provides remedies for “anything that can properly be called a business practice and that at the same time is forbidden by law.” (Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co. (1999) 20 Cal.4th 163, 180 [citations omitted].) The UCL provides that a court “may make such orders or judgments . . . as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of such unfair competition.” (Bus. & Prof. Code § 17203; see also Korea Supply Co. v. Lockheed Martin Corp. (2003) 29 Cal.4th 1134, 1146 [“An order for restitution, then, is authorized by the clear language of the [UCL.”]].) The law also permits courts to award injunctive relief and, in certain cases, to assess civil penalties against the violator. (Bus. & Prof. Code §§ 17203, 17206.)
The FAL proscribes making or disseminating any statement that is known or should be known to be untrue or misleading with intent to directly or indirectly dispose of real or personal property. (Bus. & Prof. Code § 17500 et seq.) Violators are subject to a civil penalty not to exceed $2,500 for each violation in an action brought by the Attorney General or by any district attorney, county counsel, or city attorney. (Bus. & Prof. Code § 17536.) Similar to the UCL, the FAL provides that a person may bring an action for an injunction or restitution if the person has suffered injury in fact and has lost money or property as a result of a violation of the FAL. (Bus. & Prof. Code § 17535.)
The CLRA was enacted “to protect the statute’s beneficiaries from deceptive and unfair business practices,” and to provide aggrieved consumers with “strong remedial provisions for violations of the statute.” (Am. Online, Inc. v. Superior Court (2001) 90 Cal.App.4th 1, 11.) The CLRA prohibits “unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer,” (Civ. Code § 1770(a)), and prohibits conduct “likely to mislead a reasonable consumer,” (Colgan v. Leatherman Tool Grp., Inc. (2006) 135 Cal. App. 4th 663, 680; internal quotation marks omitted.)
Among other things, the CLRA prohibits merchants from “representing that a transaction confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law,” or representing that goods “are of a particular standard, quality, or grade” when they are of another. (Civ. Code § 1770.) Consumers who are harmed by unlawful practices specified in the Act have a right of action under the CLRA to recover damages and other remedies, including actual damages; an order to enjoin the unlawful act; restitution; punitive damages; or any other relief that the court deems proper. (Civ. Code § 1780.) Additionally, the statute authorizes courts to award attorney’s fees to prevailing plaintiffs and contains mechanisms for securing remedies on a class-wide basis. (Civ. Code §§ 1780, 1781.) Consumers who are over the age of 65 are eligible to additionally seek and be awarded, in addition to the above remedies, up to $5,000 where the trier of fact finds certain circumstances are met.
In addition, Civil Code section 3345 authorizes a trier of fact to treble the amount of a fine, civil penalty, or other remedy in an action brought to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of a senior citizen, disabled person, or veteran if certain affirmative findings are made. (Civ. Code § 3345.)
- Enhancing protections for Californians affected by wildfires and other emergencies
Economic vulnerability is a primary concern in disaster scenarios. In an effort to rebuild their lives, those affected by wildfires, earthquakes, pandemics, and other crises struggle to secure housing, replace essential goods, and initiate reconstruction efforts.
Without robust legal safeguards, basic necessities like water, medical supplies, building materials, temporary housing, and emergency repairs can become financially inaccessible to those most in need as the result of price gouging and other predatory conduct. Reports of such conduct in the aftermath of the recent fires in Southern California illustrate the problem:
Laura Kate Jones, a real estate agent in Los Angeles, is trying to find a house for a client whose Pacific Palisades home turned to rubble this week. The woman and her two children were left with no belongings but the clothes on their backs.
Ms. Jones has been scouring the West Los Angeles rental market to find a house that the family could rent for the next eight months, or longer. On Friday morning, she noticed something disturbing on the rents of at least three of the properties she had been tracking: 15 to 20 percent increases overnight.
The sudden surge in rental costs took Ms. Jones by surprise, but aligned with what she has noticed since wildfires started to tear through the Los Angeles area on Tuesday. Ms. Jones was touring a rental house in Beverly Hills with her client on Thursday when the listing agent raised the monthly cost by $3,000 — on the spot. Agents and landlords are aware that some displaced Angelenos might be willing to pay given the circumstance.
“People are so panicked and desperate to get into a house right now that they’re just throwing money into the wind,” Ms. Jones said. “People taking advantage of this. It’s horrendous.”[1]
Effective legislation must establish clear guidelines that prevent dramatic price increases during declared emergencies, with meaningful penalties that significantly outweigh potential illicit gains. In many cases, such protections must also extend beyond immediate emergency periods, recognizing that the potential for exploitation can persist throughout long-term recovery processes.
This bill augments the consumer protection laws above to deter and provide enhanced remedies in response to such unfair and unlawful conduct committed against those that have been displaced by or otherwise affected by a crisis leading to a state of emergency or a local emergency.
First, the bill adds persons displaced due to a state of emergency or a local emergency, as defined, to the list of protected persons under Civil Code section 3345, providing enhanced remedies for these victims.
Second, in addition to any liability for a civil penalty pursuant to Section 17206, the bill provides that a person in violation of the UCL, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, is liable for a civil penalty not to exceed $2,500 for each violation, as provided.
Next, the bill makes it unlawful pursuant to the CLRA to engage in a violation of Section 396 of the Penal Code, including, but not limited to, price gouging during a state of emergency or local emergency.
Section 396 provides that, 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 percent greater than the price charged by that person immediately prior to the proclamation or declaration of emergency.
The bill also expands Section 396 protection to apply to all counties in the proclamation or declaration of emergency as well as all adjacent counties and counties within a 50-mile radius of the counties in the proclamation or declaration of emergency. It also defines price gouging for those purposes and updates the guidelines governing extensions of its provisions.
Finally, the bill places obligations on housing listing platforms to help combat price gouging and root out violations of Section 396. “Housing listing platform” is defined as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. The bill requires the platforms to:
- Alert local, regional, or state law enforcement agencies if it knows or has reason to believe that the price for a listing made available on the housing listing platform violates Section 396 of the Penal Code.
- Establish and maintain a policy informing a person that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the person’s account.
- Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code.
- Provide a mechanism on the housing listing platform that allows the housing listing platform and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes.
- Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent price gouging.
By establishing a robust legal framework that prioritizes the protection of disaster victims, California can create a more resilient and supportive recovery ecosystem. These protections not only provide immediate relief but also contribute to long-term community resilience, ensuring that those most vulnerable can rebuild their lives with dignity and security.
According to the authors:
In times of crisis, Californians should be able to focus on recovery and rebuilding, not on predatory financial exploitation. Unfortunately, recent disasters—such as the devastating January 2025 firestorms—have shown that gaps in our current laws allow opportunists to take advantage of vulnerable, displaced residents.
SB 36 closes these loopholes and strengthens protections against rental price gouging during declared emergencies. Under existing law, price gouging protections apply broadly to goods and services but do not explicitly cover rental housing. As we saw in the aftermath of the Southern California fires, bad actors took advantage of this oversight by listing properties in neighboring counties that were not subject to the emergency declaration, evading accountability while still targeting displaced residents.
SB 36 ensures that disaster victims are not further victimized by financial exploitation. It enhances civil penalties for price gouging, empowers public prosecutors with greater enforcement tools, and extends protections to counties within a 50-mile radius of the affected area to prevent circumvention of the law. Additionally, SB 36 brings accountability to online housing platforms by requiring them to monitor and report instances of price gouging and enforce fair pricing policies.
California has long led the way in protecting consumers, and SB 36 builds on that commitment by closing critical gaps in our price gouging laws. When disaster strikes, Californians deserve stability, fairness, and the assurance that the law will hold those who seek to profit from tragedy accountable. I urge my colleagues to support SB 36 to protect our most vulnerable residents when they need it most.
- Stakeholder positions
Consumer Watchdog writes in support:
While emergency declarations prohibited excessive rent increases in Los Angeles County, dishonest property owners exploited a loophole by listing rental properties at exorbitant rates in neighboring counties such as Orange County, where no emergency had been declared. This practice obstructed enforcement efforts and placed further hardship on displaced families in desperate need of shelter.
Consumer Watchdog supports SB 36 because it strengthens consumer protections by increasing penalties for price gouging and requiring online housing platforms to enforce fair pricing policies, report violations, and provide mechanisms for consumer complaints. It empowers displaced individuals to take legal action, grants courts the authority to award damages, and enhances prosecutorial tools to investigate and address housing-related price gouging. Additionally, it extends protections to counties within a 50-mile radius of an affected area, preventing exploitation in nearby markets.
SUPPORT
Consumer Attorneys of California
Consumer Watchdog
OPPOSITION
None known
RELATED LEGISLATION
Pending Legislation:
SB 547 (Pérez, 2025) expands the current one year insurance non-renewal moratorium for residential policies within the perimeters or adjoining ZIP Codes of wildfires to also include commercial policies. SB 547 is currently in the Senate Insurance Committee.
SB 571 (Archuleta, 2025) provides, among other things, for increased penalties for impersonating firefighters and other first responders, and for looting in a fire evacuation area. SB 571 is currently in the Senate Public Safety Committee.
SB 610 (Pérez, 2025) provides protections for wildfire victims by, among other things, providing temporary mortgage loan forbearance relief for homeowners, allowing tenants to recover a proportion of their paid rent if the tenancy agreement terminates due to a wildfire, establishes a temporary rent control for mobilehomes in areas subject to a state of an emergency, allows mobilehome owners the right to return to a unit after a wildfire, as specified, and extends court timelines for unlawful detainer cases in areas subject to a state of an emergency. SB 610 is currently in this Committee.
SB 641 (Ashby, 2025) protects consumers by, among other things, establishing timelines and certifications for appropriate debris removal and keeping property owners and disaster area survivors safe from predatory practices by prohibiting a person from making an unsolicited purchase offer in a disaster area. SB 641 is currently in the Senate Business and Professions Committee.
Prior Legislation:
AB 1730 (Davies, Ch. 78, Stats. 2022) added veterans to the list of protected persons in Section 3345 of the Civil Code.
SB 1196 (Umberg, Ch. 339, Stats. 2020) expanded Section 396 of the Penal Code to also include selling or offering to sell relevant goods or services for a price 10 percent greater than the price charged immediately prior to a date set by the proclamation or declaration of emergency. It also made it unlawful for a person, contractor, business, or other entity who did not charge a price for the goods or services immediately prior to the proclamation or declaration of emergency to charge a price that is more than 50 percent greater than the seller’s existing costs, as specified. SB 1196 authorized the Governor or the Legislature to extend the duration of these prohibitions for periods greater than 30 days, and during the extension, authorized specified price increases that exceed the otherwise permissible amount, as specified.
**************
Danielle Kaye, Prices Spike on Some L.A. Rentals as Fire Victims Search for Places to Stay (January 10, 2025) The New York Times, https://www.nytimes.com/2025/01/10/business/california-fires-rent-price-gouging.html [as of Mar. 26, 2025]. ↑
Discussed in Hearing
2MIN
Senate Floor
1MIN
Assembly Floor
5MIN
Assembly Standing Committee on Public Safety
6MIN
Assembly Standing Committee on Judiciary
4MIN
Senate Floor
28SEC
Senate Standing Committee on Appropriations
5MIN
Senate Standing Committee on Environmental Quality
12MIN
