SB 493: Unlawful business practices: price gouging.

Under existing law, upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the governing authority of any county, city, or city and county, and for 30 days or 180 days, as specified, following the proclamation or declaration of emergency and any period the proclamation or declaration is extended by the applicable authority, it is a misdemeanor for any person, business, or other entity to sell or offer to sell specified goods and services for a price of more than 10% greater than the price charged by that entity 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. Existing law also makes related protections against eviction. Existing law defines state of emergency for these purposes 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, and a local emergency as any of the above-described disasters 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.

This bill would additionally include war, as defined, to the above-described disasters. disasters for purposes of essential consumer goods or services for which the Attorney General has issued a written opinion finding a sufficient nexus between the war at issue and increases in the prices of those goods or services. By expanding the application of an existing crime to additional circumstances, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.