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<ns0:Id>20250SB__136599INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Allen</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Sections 16750, 16750.2, 16752, 16753, 16754, 16754.5, 16755, 16755.1, 16758, 16759, and 16760 of the Business and Professions Code, and to amend Section 396 of the Penal Code, relating to business. </ns0:Title>
<ns0:RelatingClause>business</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Unlawful business practices: price gouging.</ns0:Subject>
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<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law, commonly known as the Cartwright Act, generally regulates trusts, defined as a combination of capital, skill, or acts by 2 or more persons for certain purposes, including to create or carry out restrictions in trade or commerce. Existing law makes every trust unlawful, against public policy, and void, except as provided. Under existing law, a violation of these provisions is a conspiracy against trade and is punishable by fines or imprisonment, or both, as specified.
</html:p>
<html:p>Existing law authorizes any person who is injured in their business or property by reason of any violation of these provisions to file a lawsuit, as provided, and to recover 3 times the damages sustained, plus interest and other relief, as specified. Existing law deems the state and any of its political subdivisions and public agencies as a
person for purposes of these provisions.</html:p>
<html:p>Existing law authorizes the Attorney General, or the district attorney of any county, subject to specified notice requirements, to initiate civil actions or criminal proceedings for violation of these provisions, and authorizes the Attorney General or the district attorney to initiate an action against a corporation or association, including a foreign corporation or foreign association, for specified remedies.</html:p>
<html:p>This bill would similarly authorize the city attorney of any city with a population in excess of 750,000 to initiate and prosecute those actions on behalf of the city or any public agency or political subdivision located wholly within the city, or on behalf of natural persons residing in the city.</html:p>
<html:p>Under existing law, an Attorney General or district attorney who initiates an action is entitled to retain a specified amount from the
proceeds, if any, for expenses for investigation and prosecution, and to retain a specified amount from the collection of a fine or civil penalty, as provided.</html:p>
<html:p>This bill would similarly entitle a city attorney of any city with a population in excess of 750,000 who initiates an action to retain similar amounts.</html:p>
<html:p>Existing law grants to a district attorney who reasonably believes that there may be a violation of these provisions all of those powers granted to the Attorney General as a head of a department for purposes of specified laws relating to investigation and prosecution, and subjects the district attorney to other specified laws relating to financial privacy.</html:p>
<html:p>This bill would similarly grant those powers to a city attorney who reasonably believes that there may be a violation, and would subject the city attorney to those specified laws relating to financial privacy.</html:p>
<html:p>The bill would make other related changes.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Under existing law, upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the executive officer of any county, city, or city and county, and for 30 days following the proclamation or declaration of emergency, it is a misdemeanor for any person, business, or other entity, to increase the rental price advertised, offered, or charged for housing, to an existing or prospective tenant, by more than 10%. Existing law exempts an increase from these provisions if the person can prove that the increase is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than 10%.
</html:p>
<html:p>This bill would
instead exempt an increase if the increase was directly attributable to additional costs for repairs or additions beyond normal maintenance and the costs were incurred as a result of the event that triggered the proclamation or declaration of emergency, or, if the increase was directly attributable to additional costs for repairs or additions beyond normal maintenance incurred within the year prior to the proclamation or declaration and either the housing was rented, advertised for rent, or offered for rent at the time the costs were incurred or the person can prove that within a year before the proclamation or declaration, the intent to offer the housing for rent within 6 months of the repair or addition already existed.</html:p>
<html:p>Existing law defines housing for these purposes as any rental housing with an initial lease term of no longer than one year.</html:p>
<html:p>This bill would expand the definition of “housing” to include any rental housing
without regard to the length of the initial lease term.</html:p>
<html:p>Existing law defines the rental price of housing advertised, offered, or charged at a daily rate at the time of the proclamation or declaration of emergency that is advertised, offered, or charged on a periodic lease agreement after the declaration or proclamation of emergency as being 160% of the fair market rent established by the United States Department of Housing and Urban Development, which may be increased by 5% if the housing is offered for rent fully furnished. </html:p>
<html:p>
This bill would define the rental price of housing advertised, offered, or charged at a daily rate following a declaration or proclamation of emergency, but that was not advertised, offered, or charged at a daily rate in the year prior to the declaration or proclamation of emergency as being
<ns0:Fraction>
<ns0:Numerator>1</ns0:Numerator>
<ns0:Denominator>30</ns0:Denominator>
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of the
amount above.
</html:p>
<html:p>By expanding the scope of a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:Election>NO</ns0:Election>
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<ns0:BudgetBill>NO</ns0:BudgetBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_A5B49546-A751-4A2C-B5DC-D9BAA8D719F5">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 16750 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>16750.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Any person who is injured in their business or property by reason of anything forbidden or declared unlawful by this chapter, may sue therefor in any court having jurisdiction in the county where the defendant resides or is found, or any agent resides or is found, or where service may be obtained, without respect to the amount in controversy, and to recover three times the damages sustained by
them, interest on
their actual damages pursuant to Section 16761, and preliminary or permanent injunctive relief when and under the same conditions and principles as injunctive relief is granted by courts generally under the laws of this state and the rules governing these proceedings, and shall be awarded reasonable attorney’s fees together with the costs of the suit.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This
action may be brought by any person who is injured in their business or property by reason of anything forbidden or declared unlawful by this chapter, regardless of whether the injured person dealt directly or indirectly with the defendant.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The amendments to this section adopted at the 1959 Regular Session of the Legislature do not apply to any action commenced prior to September 18, 1959.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The state and any of its political subdivisions and public agencies shall be deemed a person within the meaning of this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Attorney General may bring an action on behalf of the state or of any of its political subdivisions or public agencies to recover the damages provided for by this section, or by any comparable provision of federal law, provided that the Attorney General shall notify in writing any political subdivision or public agency of
their
intention to bring the action on its behalf, and at any time within 30 days thereafter,
the political subdivision or public agency may, by formal resolution of its governing body or as otherwise specifically provided by applicable law, withdraw the authority of the Attorney General to bring the intended action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In
any action brought pursuant to this section on behalf of any political subdivision or public agency of the state, the state shall retain for deposit into the Attorney General antitrust account within the General Fund, out of the proceeds, if any, resulting from the action, an amount equal to the expense incurred by the Attorney General in the investigation and prosecution of the action or an amount equal to 10
percent of the total recovery obtained by the Attorney General, whichever is greater.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In any antitrust action brought on behalf of the state in which the Attorney General is the class representative of political subdivisions, public agencies, or citizens of the state who have been affected by the matters set forth in the complaint, the state shall retain for deposit into the Attorney General antitrust account within the General Fund, the proceeds, if any, of any attorney’s fees awarded by the court in which
the case is located, to the Attorney General, resulting from the
class representation.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In any action brought by the Attorney General pursuant to either state or federal antitrust laws for the recovery of damages by the state or any of its political subdivisions or public agencies, in addition to their other powers and authority, the Attorney General may enter into contracts relating to the investigation and the prosecution of the action with any other party plaintiff
who has brought a similar action for the recovery of damages and with whom the Attorney General finds it advantageous to act jointly, or to share common expenses or to cooperate in any manner relative to the action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In any action pursuant to this section, notwithstanding the
provisions of Section 12520 of the Government Code, the Attorney General may undertake, among other things, either to render legal services as special counsel to, or to obtain the legal services of special counsel from any department or agency of the United States, of this state or any other state or any department or agency thereof, any county, city, public corporation or public district of this state or of any other state, that has brought or intends to bring a similar action for the recovery of damages, or their duly authorized legal representatives in the action.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The
Attorney General may also enter into any agreement authorized by Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code with any governmental entity enumerated in this subdivision, notwithstanding any provision to the contrary contained in Section 6500 of the Government Code. Every contract or agreement entered into pursuant to this subdivision (e) shall be approved by the Department of General Services.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The amounts paid into the Attorney General antitrust account within the General Fund pursuant to subdivisions (c), (d) and (e) arising from the same action or companion actions shall not cumulatively exceed the greater of 10 percent of the total recovery in all actions resulting from the
Attorney General’s representation or an amount equal to the expenses incurred by the Attorney General in the investigation and prosecution of
those actions. Any excess shall be paid into the General Fund.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The district attorney of any county may prosecute any action on behalf of the county or any city or public agency or political subdivision located wholly within the county which the Attorney General is authorized to bring pursuant to subdivision
(c), whenever it appears that the activities giving rise to the
prosecution or the effects of the activities occur primarily within the county.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The district attorney shall file with the Attorney General at least 30 days prior to the filing of
the
action a copy of the proposed complaint together with a confidential memorandum and report explaining the facts giving rise to the proposed prosecution and supporting the filing of the new complaint.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Prior to entering into any stipulated or consent judgment or other settlement of the action, the district attorney shall file with the Attorney General at least 30 days prior to the execution thereof a copy of the proposed settlement together with a memorandum of
explanation of the settlement.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The Attorney General may waive any time requirements provided in this subdivision.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
In any investigation or action undertaken or brought by a district attorney pursuant to this section, if the Attorney General deems it necessary and in the public interest, the Attorney General may take full charge of
the investigation or prosecution, and the Attorney General shall have all the powers granted by Section 12550 of the Government
Code.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The city attorney of any city with a population in excess of 750,000 may prosecute the action on behalf of the city or public agency or political subdivision located wholly within the city which the Attorney General is authorized to bring pursuant to subdivision (c), whenever it appears that the activities giving rise to prosecution or the effects of the activities occur primarily within the city.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The city attorney shall file with the Attorney General at least 30 days prior to the filing of the action a copy of the proposed complaint together with a confidential memorandum and report explaining the facts giving rise to the proposed prosecution and supporting the filing of the new complaint.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Prior to entering into any stipulated or consent judgment or other settlement of the action, the city attorney shall file with the Attorney General at least 30 days prior to the execution thereof a copy of the proposed settlement together with a memorandum of explanation of the settlement.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The Attorney General may waive any time requirements provided in this subdivision.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
In any investigation or action undertaken or brought by a city attorney pursuant to this section, if the Attorney General deems it necessary and in the public interest, the Attorney General may take full charge of the investigation or prosecution, and the Attorney General shall have all powers granted pursuant to Section 12550 of the Government Code.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
In any action prosecuted pursuant to the provisions of subdivision (g) a district attorney may exercise all of the powers conferred on the Attorney General by subdivision (e) provided that every contract or agreement entered into pursuant to this subdivision by a district attorney shall first be approved by the governing authority of the agency in their
county.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
In any action prosecuted pursuant to subdivision (h), a city attorney of any city with a population in excess of 750,000 may exercise all of the powers conferred on the Attorney General pursuant to subdivision (e) provided that every contract or agreement entered into pursuant to this subdivision by a city attorney shall first be approved by the governing authority of the agency in their city.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In any action brought pursuant to subdivision (g) a district attorney may represent any political subdivision located within
their county directly, in which case they shall notify in writing the political subdivision of their intention to bring the action on its behalf, and at any time within 30 days
thereafter, that political subdivision may, by formal resolution of its governing body or as otherwise specifically provided by applicable law, withdraw the authority of the district attorney to bring the intended action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In any action in which a district attorney directly represents any political subdivision located within their county, the district attorney shall retain out of the proceeds, if any, resulting from
the action, an amount equal to the expense incurred by the district attorney in the investigation and prosecution of the action or an amount equal to 10 percent of the total recovery obtained by the district attorney, whichever is greater.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In
any action brought pursuant to subdivision (g) in which the county, through the district attorney, is the class representative of political subdivisions located within the county, the district attorney shall retain the proceeds, if any, of any attorney’s fees awarded by the court in which the action is pending to the district attorney, resulting from
the class representation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
All proceeds retained by a district attorney pursuant to this subdivision shall be deposited into the appropriate account as provided by law.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In any action brought pursuant to subdivision (h), a city attorney of a city with a population
in excess of 750,000 may represent any political subdivision located within their city directly, in which case they shall notify in writing the political subdivision of their intention to bring any the action on its behalf, and at any time within 30 days thereafter, that political subdivision may, by formal resolution of its governing body or as otherwise specifically provided by applicable law, withdraw the authority of the city attorney to bring the intended action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In any action in which a city attorney of a city with a population in excess of 750,000 directly represents any political subdivision located within the city, the city attorney shall retain out of the proceeds, if any, resulting from the action, an amount equal to the expense incurred by the city attorney in the investigation and prosecution of the action or an amount equal to 10 percent of the total recovery obtained by the city attorney, whichever is greater.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In any action brought pursuant to subdivision (h) in which the city with a population in excess of 750,000, through the city attorney, is the class representative of political subdivisions located within the city, the city attorney shall retain the proceeds, if any, of any attorney’s fees awarded by the court in which the action is pending to the city attorney, resulting from the class representation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
All proceeds retained by a city attorney pursuant to this subdivision shall be deposited into the appropriate account as provided by law.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
This section shall
not
be construed to authorize any district attorney or city attorney of a city with a population in excess of 750,000 to exercise the powers conferred upon the Attorney General by an act of Congress of September 30, 1976, (P.L. 94-905; 90 Stat. 1983) also known as the Hart-Scott-Rodino Antitrust Improvements Act of 1976, except at the direction of the Attorney General.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 16750.2 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>16750.2.</ns0:Num>
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(a)
<html:span class="EnSpace"/>
A person, other than the Attorney General, a district attorney, or the city attorney of a city with a population in excess of 750,000, who commences, by writ or appeal, any proceeding in the Supreme Court of California or a state court of appeal in which a violation of this chapter is alleged or any application of this chapter
is in issue shall serve notice thereof upon the Attorney General within three days after the commencement of the proceeding, provided that the time may be extended by the Chief Justice or presiding justice for good cause shown.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Relief, temporary or permanent, shall not be granted until proof of service of this notice is filed with the
court.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 16752 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>16752.</ns0:Num>
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<html:p>Upon a violation of this chapter by a corporation or association, the Attorney General, the district attorney of the proper
county, or the city attorney of a city with a population in excess of 750,000 may institute proper proceedings in a court of competent jurisdiction for the forfeiture of charter rights, franchises, or privileges and powers exercised by
the corporation or association, and for the dissolution of the corporation or association.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 16753 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>16753.</ns0:Num>
<ns0:LawSectionVersion id="id_33446323-E29C-4D33-990B-B220873D30BD">
<ns0:Content>
<html:p>A foreign corporation or association, exercising any of the powers, franchises, or functions of a corporation in this state that violates this chapter, is subject to revocation of those powers,
franchises, or functions and upon the revocation is prohibited from doing any business in this state. The Attorney General, a district attorney of a county where the offense or any part of the offense is committed, or the city attorney of a city with a population in excess of 750,000 in which the
offense or any part of the offense is committed may enforce this provision by bringing proper proceedings by injunction or otherwise. Upon receipt of a certified copy of the judgment and decree of any court of competent jurisdiction finding any foreign corporation or association guilty of violating this chapter and ordering a revocation of its powers,
franchises, or functions of a corporation in this state, the Secretary of State shall revoke the license of the corporation or association previously authorized to do business in this state.</html:p>
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</ns0:LawSectionVersion>
</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_742D0C37-070C-4365-BAA0-E8CE7488305E">
<ns0:Num>SEC. 5.</ns0:Num>
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Section 16754 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_9A3F47C2-84D7-43D2-B2F5-F59DC8F5757E">
<ns0:Num>16754.</ns0:Num>
<ns0:LawSectionVersion id="id_7C60B3A8-EC8B-4FEF-A846-B2D2D3FB21CB">
<ns0:Content>
<html:p>The Attorney General, the district attorney of any county, subject to the notice requirements of subdivision (g) of Section 16750, or the city attorney of a city with a population in excess of 750,000, subject to the notice requirements of subdivision (h) of Section 16750, shall initiate civil actions or criminal proceedings for violation of this chapter. Civil actions and criminal proceedings for violation of this chapter initiated by the Attorney
General, district attorney, or city attorney may be brought in the superior court in and for any county where the offense or any part of the offense is committed or where any of the offenders reside or where any corporate defendant does business. In any civil action or criminal proceeding brought by a district attorney or city attorney pursuant to this section, the Attorney General shall have all of the powers set forth in Section 12550 of the Government
Code.</html:p>
</ns0:Content>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_A65E3540-2DB5-4B93-B739-8C75AF0A3360">
<ns0:Num>SEC. 6.</ns0:Num>
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Section 16754.5 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_007AB6B7-47CB-4A69-93A3-71326947B5D2">
<ns0:Num>16754.5.</ns0:Num>
<ns0:LawSectionVersion id="id_E5F354DB-1E32-4A07-A3D8-623DA04F42A6">
<ns0:Content>
<html:p>In a civil action brought by the Attorney General, a district attorney, or the city attorney of a city with a population in excess of 750,000, under this chapter, the court may, in addition to granting
prohibitory injunctions and other restraints as it may deem expedient to deter the defendant from, and insure against the defendant, committing a future violation of this chapter, grant mandatory injunctions as may be reasonably necessary to restore and preserve fair competition in the trade or commerce affected by the violation.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_DED704F6-1EB5-47FA-950E-F25A48152711">
<ns0:Num>SEC. 7.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'16755.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 16755 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1AD84A95-9862-4C5C-9363-C26264086423">
<ns0:Num>16755.</ns0:Num>
<ns0:LawSectionVersion id="id_85AC2836-DA3A-4032-A87D-3CE4ED662CA0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A violation of this chapter is a conspiracy against trade, and any person who engages in a conspiracy or takes part in a conspiracy, or aids or advises in its commission, or who as principal, manager, director, agent, servant or employee,
or in any other capacity, knowingly carries out any of the stipulations, purposes, prices, or rates, or furnishes any information to assist in carrying out those purposes or orders, or acts in pursuance of the conspiracy, is punishable, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If the violator is a corporation, by a fine of not more than six million dollars ($6,000,000) or the applicable amount under paragraph (3), whichever is greater.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the violator is an individual, by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for one, two, or three years, by imprisonment for not more than one year in a county jail, by a fine of not more than the greater of one million dollars ($1,000,000) and a fine of the applicable amount under paragraph (3), or by both a fine and imprisonment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If any person derives pecuniary gain from a violation of this chapter, or the violation results in pecuniary loss to a person other than the violator, the violator may be fined not more than an amount equal to the amount of the gross gain multiplied by two or an amount equal to the amount of the gross loss multiplied by two, whichever is applicable.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An
action pursuant to this section may be commenced at any time within four years after the commission of the last act comprising a part of any violation.
A cause of action barred under existing law on the effective date of the amendment of this section at the 1977–78 Regular Session of the Legislature shall not be revived by that amendment.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
All moneys received by any court in payment of any fine or civil penalty imposed pursuant to this section shall, as soon as practicable after receipt of the fine or penalty, be deposited with the county treasurer of the county in which the court is situated. Amounts deposited shall be paid as soon as practicable as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If the moneys received resulted from an action initiated and prosecuted by the Attorney General, then on order of the Controller, 100 percent shall be paid to the Treasurer by warrant of the county auditor drawn upon the requisition of the clerk or judge of the court to be deposited into the Attorney General antitrust account within the General
Fund of the State Treasury, as established under Section 12526 of the Government
Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the action was initiated and prosecuted by a district attorney, then 100 percent shall be paid as soon as practicable to the treasurer of the county in which the prosecution is conducted.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the action was initiated and prosecuted by a city attorney of a city with a population in excess of 750,000, then 100 percent shall be paid as soon as practicable to the treasurer of the city in which the prosecution
is conducted.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If the action was initiated and prosecuted jointly by the Attorney General and a district attorney or jointly by more than one district attorney, those amounts shall be paid to the Treasurer and to the treasurer or treasurers of the county or counties participating in the prosecution in a proportion agreed upon by the agencies jointly prosecuting the case and as approved by the court.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
If the action was initiated and prosecuted jointly by the Attorney General and a city attorney of a city with a population in excess of 750,000 or jointly by more than one city
attorney of a city with a population in excess of 750,000, those amounts shall be paid to the Treasurer and to the treasurer or treasurers of the city or cities participating in the prosecution in a proportion agreed upon by the agencies jointly prosecuting the case and as approved by the court.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_B5ACD411-EA84-4A40-AE8D-A966DA256E16">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 16755.1 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_55C7988D-47E9-4BF3-BF78-4C757EB112ED">
<ns0:Num>16755.1.</ns0:Num>
<ns0:LawSectionVersion id="id_83657CDF-81DC-4EF2-95DB-F97495E210A6">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A civil penalty of not more than one million dollars ($1,000,000) shall be assessed and recovered in any civil action brought by the Attorney General, a district attorney, or a city attorney of a city with a population in excess of 750,000 against any person, corporation, or business entity for each violation of this chapter.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In assessing the amount of a civil penalty pursuant to this section, a court or jury shall consider any relevant circumstances presented by any of the parties to the case, including, but not limited to, all of the
following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The nature and seriousness of the misconduct.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The number of violations committed by the defendant.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The persistence of the defendant’s misconduct.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The length of time over which the defendant’s misconduct occurred.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The willfulness of the defendant’s misconduct.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The defendant’s assets, liabilities, and net worth.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The extent to which the defendant cooperated in the Attorney General’s or district attorney’s investigation and litigation.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The penalty described in
this section shall be recovered only in a civil action brought by the Attorney General, a district attorney,
or city attorney, or by any of that person’s attorneys designated by it for that purpose, against any party that violates this chapter.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A penalty collected pursuant to this section shall accrue only to the State of California, the county treasurer of the county in which the court is situated, or the treasurer of the city in which the prosecution is conducted, and all proceeds retained pursuant to this section shall be deposited pursuant to subdivision (c) of Section 16755.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_AF405FEC-F221-4851-92F6-F2CFFED1557B">
<ns0:Num>SEC. 9.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'16758.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 16758 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_0B9F8F75-FC18-4B41-9E9E-3A1E491C8102">
<ns0:Num>16758.</ns0:Num>
<ns0:LawSectionVersion id="id_2935465E-4ECB-4DF2-AE70-5356A076AC0A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In an action or proceeding brought by the Attorney General, a district attorney, or a city attorney of a city with a population in excess of 750,000 for the violation of this
chapter, a person shall not be excused from attending, testifying, or producing books, papers, or documents in obedience to subpoena or under order of court on the ground that the testimony or evidence required of the person
may tend to incriminate
the person
or subject the person to any penalty.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An individual shall not be prosecuted or subjected to
a penalty for or on account of any transaction, matter, or thing concerning which the person may testify or produce evidence in any action or proceeding brought by the Attorney General, a district
attorney, or a city attorney under this chapter.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_A46645B5-F5B0-4147-90AB-7E1D70A7D40D">
<ns0:Num>SEC. 10.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'16759.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 16759 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_20DF679D-AD1B-4E61-B4EB-5EF64719D653">
<ns0:Num>16759.</ns0:Num>
<ns0:LawSectionVersion id="id_C229A497-939C-4B7A-A866-4A9A09DAEFFF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
All those powers granted to the Attorney General as a head of a department under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code shall be granted to the district attorney of any county when that district attorney reasonably believes that there may have been a violation of Article 2 (commencing with Section 16720) or Article 3 (commencing with Section 16750), or a violation of Chapter 4 (commencing with Section 17000)
or Chapter 5 (commencing with Section
17200), and shall be subject to the provisions of Chapter 20 (commencing with Section 7460) of Division 7 of Title 1 of the Government Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
All those powers granted to the Attorney General as a head of a department under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code shall be granted to the city attorney of any city having a population in excess of 750,000 when that city attorney reasonably believes that there may have been a violation of Article 2 (commencing with Section 16720) or Article 3 (commencing with Section 16750), and shall be subject to the provisions of Chapter 20 (commencing with Section 7460) of Division 7 of Title 1 of the Government Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
All those powers granted to the Attorney General as head of a department under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code shall be granted to the city attorney of any city having a population in excess of 750,000, to the county counsel of any county within which a city has a population in excess of 750,000, or to a city attorney of a city and county, when the city attorney or county counsel reasonably believes that there may have been a violation of Chapter 5 (commencing with Section 17200), and shall be subject to the provisions of Chapter 20 (commencing with
Section 7460) of Division 7 of Title 1 of the Government Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Any investigation pursuant to these powers shall be conducted in accordance with the procedures set forth in Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code, including all applicable principles relating to immunity from self-incrimination. However, Section 16758 shall not be construed as providing automatic immunity with respect to the subject of a subpoena issued in connection with that investigation. Court orders sought pursuant to this section shall be sought in the superior court of the county in which the district attorney, authorized
pursuant to subdivision (a), or the city attorney or county counsel, authorized pursuant to subdivision (b), seeking the order holds office.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Should the recipient of
a subpoena issued pursuant to the powers granted in subdivision (b) object to the request in whole or in part, the recipient
shall serve objections and meet and confer with the issuer of the subpoena in an attempt to address those objections. If after meeting and conferring, the issuer and recipient cannot reach agreement, the recipient may petition the superior court for an order quashing or modifying the subpoena in whole or in part.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_5FF36710-E694-42BB-AF33-C89ACBE82DA3">
<ns0:Num>SEC. 11.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'16760.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 16760 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_A5A82535-8101-41D9-96A1-42680CE188B5">
<ns0:Num>16760.</ns0:Num>
<ns0:LawSectionVersion id="id_C5824DEF-9F85-420D-8298-51460E0D1641">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Attorney General may bring a civil action in the name of the people of the State of California, as parens patriae on behalf of natural persons residing in the state, in the superior court of any county that has jurisdiction of a defendant, to secure monetary relief as provided in this section for injury sustained by those natural persons to their property by reason of any violation of this chapter. The court shall exclude from the amount of monetary relief awarded in the action any amount of monetary relief (A)
that duplicates amounts that have been awarded for the same injury, or (B) that is properly allocable to (i) natural persons who have excluded their claims pursuant to paragraph (2) of subdivision (b), and (ii) any business entity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The court shall award the state as monetary relief three times the total damage sustained as described in paragraph (1), the interest on the total damages pursuant to Section 16761, and the costs of suit, including a reasonable attorney’s fee.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The court may, in its discretion, award a reasonable attorney’s fee to a prevailing defendant upon a finding that the Attorney General or district attorney has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In any action brought under this section, the Attorney General shall, at any time, in any manner, and with any content as the court may direct, cause notice of the action
to be given by publication. If the court finds that notice given solely by publication would deny due process of law to any person or persons, the court may direct further notice to the person or persons according to the circumstances of the case.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any person on whose behalf an action is brought under paragraph (1) of subdivision (a) may elect to exclude from adjudication the portion of the claim for monetary relief attributable to them by filing notice of that election with the court within the time as specified in the notice given pursuant to paragraph (1).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The final judgment in an action under paragraph (1) of subdivision (a) shall be res judicata as to any
claim under this section by any person on behalf of whom the action was brought and who fails to give notice within the period specified in the notice given pursuant to paragraph (1).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An action under paragraph (1) of subdivision (a) shall not be dismissed or compromised without the approval of the court, and notice of any proposed dismissal or compromise shall be given in any manner as the court directs.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In any action under this chapter, where there has been a determination that a defendant agreed to fix prices, damages may be proved and assessed in the aggregate by statistical or sampling methods, by the pro rata allocation of illegal overcharges or of excess profits, or by any other reasonable system of estimating aggregate damages as the court in its discretion may permit without the necessity of separately proving the individual claim of, or amount of damage to,
persons on whose behalf the suit was brought.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Monetary relief recovered by the Attorney General under this section shall be distributed as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
In any manner as the superior court having jurisdiction over the action in its discretion may authorize to insure, to the extent possible, that each person be afforded a reasonable opportunity to secure their appropriate portion of the monetary relief. In exercising its discretion, the court may employ cy pres or fluid recovery mechanisms as a way of providing value to persons injured as a result of a violation of this chapter.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Attorney General shall retain
that portion of the monetary relief awarded by the court as costs of suit and attorney’s fee for deposit into the Attorney General Antitrust Account within the General Fund.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
To the extent that the monetary relief awarded by the court is not exhausted by distribution under paragraphs (1) and (2), the remaining funds shall be treated under the provisions of Article 3 (commencing with Section 1530) and Article 4 (commencing with Section 1540) of Chapter 7 of Title 10 of Part 3 of the Code of Civil Procedure as if it were unclaimed property, as defined in Section 1300 of the Code of Civil Procedure.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The powers granted in this section are in addition to and not in derogation of the
powers granted to the Attorney General by common law in respect to bringing actions parens patriae.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The district attorney of any county may prosecute an action on behalf of the natural persons residing in the county in
which the Attorney General is authorized to bring an action pursuant to subdivision (a), whenever it appears that the activities giving rise to the prosecution or the effects of the activities occur primarily within that county. Prior to bringing the action, a district attorney shall comply with the notice requirements provided in subdivision (g) of Section 16750. In any action brought pursuant to this subdivision, the provisions of subdivisions (a) to (e), inclusive, shall be applicable, except that the portion of monetary relief awarded by the court as attorney’s fee and costs shall be retained by the district attorney for deposit into the appropriate account as provided by law.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The city attorney of a city with a population in excess of 750,000 may prosecute an action on behalf of the natural persons residing in the city in which the Attorney General is authorized to bring an action pursuant to subdivision (a), whenever it appears that the activities giving rise to the prosecution or the effects of the activities occur primarily within that city. Prior to bringing the action, a city attorney shall comply with the notice requirements provided in subdivision (h) of Section 16750. In any action brought pursuant to this subdivision, the provisions of subdivisions (a) to (e), inclusive, shall be applicable, except that the portion of monetary relief awarded by the court as attorney’s fees and costs shall be retained by the city attorney for deposit into the appropriate account as provided by law.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_BE644B4E-F750-4285-935B-776D5A280456">
<ns0:Num>SEC. 12.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:PEN:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'396.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 396 of the
<ns0:DocName>Penal Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_800CAB81-6302-4789-9FA0-3BB3EFE46D80">
<ns0:Num>396.</ns0:Num>
<ns0:LawSectionVersion id="id_8634ACEF-D7A8-4A5C-8CC8-7C6EA42E2EFE">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
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 motel’s 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.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A rental price increase greater than the amount in paragraph (1) is not unlawful if that person can prove any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
That an increase was contractually agreed to by the tenant prior to the proclamation or declaration.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
That the increase was directly attributable to additional costs for repairs or additions beyond normal maintenance incurred within the year prior to the proclamation or declaration and either of the following is true:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The housing was rented, advertised for rent, or offered for rent at the time the costs were incurred.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If that person can prove that within a year before the proclamation or declaration, the intent to offer the housing for rent within
six months of the repair or addition already existed.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
That the increase was directly attributable to additional costs for repairs or additions beyond normal maintenance and the costs were incurred as a result of the event that triggered the proclamation or declaration of emergency.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The prohibitions of this section may be extended for additional periods, as needed, by a local legislative body, local official, 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.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
For the purposes of this section, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Consumer food item” means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Emergency supplies” includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Medical supplies” includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Building materials” means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“Gasoline” means any fuel used to power any motor vehicle or power tool.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
“Housing” means any rental housing, including, but not limited to, a space rented in a mobilehome park or campground.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
“Rental price” for housing means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
Housing advertised, offered, or charged at a daily rate following a declaration or proclamation of emergency, but that was not advertised, offered, or charged at a daily rate in the year prior to the declaration or proclamation of emergency, shall be subject to a rental price that is one-thirtieth of the rental price described in subparagraph (B).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
“Goods” has the same meaning as defined in subdivision (c) of Section 1689.5 of the Civil Code.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
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.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_DB87025E-298E-4B8D-8643-DBA9A5DE7097">
<ns0:Num>SEC. 13.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>