BILL NUMBER: AB 1721 CHAPTERED 09/24/04 CHAPTER 752 FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2004 APPROVED BY GOVERNOR SEPTEMBER 24, 2004 PASSED THE ASSEMBLY AUGUST 25, 2004 PASSED THE SENATE AUGUST 16, 2004 AMENDED IN SENATE JUNE 28, 2004 AMENDED IN SENATE JUNE 15, 2004 AMENDED IN SENATE MAY 6, 2004 AMENDED IN SENATE JULY 2, 2003 AMENDED IN ASSEMBLY APRIL 28, 2003 INTRODUCED BY Assembly Member Koretz FEBRUARY 27, 2003 An act to amend Section 12024.2 of the Business and Professions Code, relating to prices. LEGISLATIVE COUNSEL'S DIGEST AB 1721, Koretz. Prices: overcharges. Existing law prohibits a person from computing, at the time of sale of a commodity, a value that is not a true extension of a price per unit that is then advertised, posted, or quoted, or charging, at the time of sale, more than the price that is then advertised, posted, or quoted. A violation of this provision is a crime. This bill would, instead, prohibit any person, at the time of sale of a commodity, from charging an amount greater than the price, or computing an amount greater than a true extension of the price per unit, that is then advertised, posted, marked, displayed, or quoted for that commodity or to charge an amount greater than the lowest posted price, notwithstanding any time limitation for that price. The bill would provide that, except as specified, when more than one price for the same commodity is advertised, posted, marked, displayed, or quoted, the person offering the commodity for sale shall charge the lowest of those prices. A violation of these provisions would be a crime. By expanding the scope of an existing crime, the bill would impose a state-mandated local program. The bill would provide that any limitation on the duration of a price that is advertised, posted, marked, displayed, or quoted at any place where a commodity is sold, and at the time of its sale, shall be void. 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. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares the following: The Legislature intends that stores always charge the lowest posted price for all items and that stores shall not rely on purported effective dates to avoid compliance with that rule. SEC. 2. Section 12024.2 of the Business and Professions Code is amended to read: 12024.2. (a) It is unlawful for any person, at the time of sale of a commodity, to do any of the following: (1) Charge an amount greater than the price, or to compute an amount greater than a true extension of a price per unit, that is then advertised, posted, marked, displayed, or quoted for that commodity. (2) Charge an amount greater than the lowest price posted on the commodity itself or on a shelf tag that corresponds to the commodity, notwithstanding any limitation of the time period for which the posted price is in effect. (b) A violation of this section is a misdemeanor punishable by a fine of not less than twenty-five dollars ($25) nor more than one thousand dollars ($1,000), by imprisonment in the county jail for a period not exceeding one year, or by both, if the violation is willful or grossly negligent, or when the overcharge is more than one dollar ($1). (c) A violation of this section is an infraction punishable by a fine of not more than one hundred dollars ($100) when the overcharge is one dollar ($1) or less. (d) As used in subdivisions (b) and (c), "overcharge" means the amount by which the charge for a commodity exceeds a price that is advertised, posted, marked, displayed, or quoted to that consumer for that commodity at the time of sale. (e) Except as provided in subdivision (f), for purposes of this section, when more than one price for the same commodity is advertised, posted, marked, displayed, or quoted, the person offering the commodity for sale shall charge the lowest of those prices. (f) Pricing may be subject to a condition of sale, such as membership in a retailer-sponsored club, the purchase of a minimum quantity, or the purchase of multiples of the same item, provided that the condition is conspicuously posted in the same location as the price. SEC. 3. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that may be given effect without the invalid provision or application. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII 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 B of the California Constitution.