BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2820|
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THIRD READING
Bill No: AB 2820
Author: Chiu (D), et al.
Amended: 8/1/16 in Senate
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE: 6-0, 6/14/16
AYES: Hancock, Anderson, Glazer, Leno, Liu, Monning
NO VOTE RECORDED: Stone
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 68-10, 5/9/16 - See last page for vote
SUBJECT: Crimes: price gouging: states of emergency
SOURCE: Author
DIGEST: This bill revises the definition of state of emergency
and local emergency for purposes of criminal price gouging,
specifying that criminal price gouging during a declared
emergency includes the rental of any housing with an initial
lease of up to one year and also the transportation of persons
and towing services.
Senate Floor Amendments of 8/1/16 (1) add Assembly Member Wilk
as a principal coauthor; and (2) add technical, non-substantive
amendments.
ANALYSIS:
AB 2820
Page 2
Existing law:
1) Finds that during emergencies and major disasters,
including, but not limited to, earthquakes, fires, floods, or
civil disturbances, some merchants have taken unfair
advantage of consumers by greatly increasing prices for
essential consumer goods and services. (Penal Code § 396,
subd. (a).)
2) States that it is the intent of the Legislature to protect
citizens from excessive and unjustified increases in the
prices charged during or shortly after a declared state of
emergency for goods and services that are vital and necessary
for the health, safety, and welfare of consumers. (Penal Code
§ 396, subd. (a).)
3) Provides that upon the declaration of a state of emergency
resulting from an earthquake, flood, fire, riot, storm, or
natural or manmade disaster declared by the President of the
United States or the Governor, or upon the declaration of a
local emergency resulting from an earthquake, flood, fire,
riot, storm, or natural or manmade disaster by the executive
officer of any county, city, or city and county, and for a
period of 30 days following that 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 above the price charged by that person for those
goods or services immediately prior to the proclamation of
emergency. (Penal Code § 396, subd. (b).)
4) States that upon the declaration of a state of emergency
resulting from an earthquake, flood, fire, riot, or storm
declared by the President of the United States or the
Governor, or upon the declaration of a local emergency
resulting from an earthquake, flood, fire, riot, or storm by
the executive officer of any county, city, or city and
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Page 3
county, and for a period of 180 days following that
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 of emergency. (Penal
Code § 396, subd. (c).)
5) Specifies that upon the proclamation of a state of emergency
resulting from an earthquake, flood, fire, riot, storm, or
other natural disaster declared by the President of the
United States or the Governor, or upon the declaration of a
local emergency resulting from an earthquake, flood, fire,
riot, storm, or other natural disaster by the executive
officer of 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. (Penal Code § 396, subd.
(d).)
6) Specifies that a greater price increase for the goods and
services, mentioned above, is not unlawful if that person can
prove that the increase in price was directly attributable to
additional costs imposed by specified circumstances. (Penal
Code § 396, subd. (a)-(c).)
7) Provides that time frame prohibiting specified price
increases may be extended for additional 30-day periods by a
local legislative body or the California Legislature, if
deemed necessary to protect the lives, property, or welfare
of the citizens. (Penal Code § 396, subd. (e).)
8) States that the conduct described above is a misdemeanor
punishable by imprisonment in a county jail for a period not
exceeding one year, or by a fine of not more than ten
thousand dollars ($10,000), or by both that fine and
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imprisonment. (Penal Code § 396 subd. (f).)
9) Specifies that the conduct described above shall constitute
an unlawful business practice and an act of unfair
competition. (Penal Code § 396 subd. (g).)
10)Defines "state of emergency" as "a natural or manmade
disaster or emergency resulting from an earthquake, flood,
fire, riot, or storm for which a state of emergency has been
declared by the President of the United States or the
Governor of California." (Penal Code § 396, subd. (g)(1).)
11)Defines "local emergency" as "a natural or manmade disaster
or emergency resulting from an earthquake, flood, fire, riot,
or storm for which a local emergency has been declared by the
executive officer or governing body of any city or county in
California." (Penal Code § 396, subd. (g)(2).)
12)Defines "housing" as "any rental housing leased on a
month-to-month term" for purposes of criminal price gouging.
(Penal Code § 396, subd. (g)(2).)
13)States that except as specified, in all leases of lands from
week to week, month to month, or other period less than a
month, the landlord may, upon giving notice in writing to the
tenant, in the appropriate manner, change the terms of the
lease to take effect, as to tenancies for less than one
month, upon the expiration of a period at least as long as
the term of the hiring itself, and, as to tenancies from
month to month, to take effect at the expiration of not less
than 30 days, but if that change takes effect within a rental
term, the rent accruing from the first day of the term to the
date of that change shall be computed at the rental rate
obtained immediately prior to that change. (Civil Code § 827,
subd. (a).)
14)Specifies that the notice, when served upon the tenant,
shall in and of itself operate and be effectual to create and
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establish, as a part of the lease, the terms, rents, and
conditions specified in the notice, if the tenant shall
continue to hold the premises after the notice takes effect.
15)States that all leases of a residential dwelling, or of any
interest therein, from week to week, month to month, or other
period less than a month, the landlord may increase the rent
provided in the lease or rental agreement, upon giving
written notice to the tenant, as follows, by either of the
following procedures:
a) By delivering a copy to the tenant personally; or
(Civil Code § 827, subd. (b)(1)(A).)
b) By serving a copy by mail under the procedures as
specified. (Civil Code § 827, subd. (b)(1)(B).)
16)States that for an increase in rent greater than 10%, the
minimum notice period required pursuant to that paragraph
shall be increased by an additional 30 days, but does not
apply to an increase in rent caused by a change in a tenant's
income or family composition as determined by a
recertification required by statute or regulation. (Civil
Code § 827, subd. (b)(3).)
This bill:
1) Revises the definition of a "state of emergency" to mean a
natural or manmade disaster or emergency caused by conditions
such as, but not limited to, air pollution, earthquake, fire,
flood, storm, epidemic, riot, drought, sudden and severe
energy shortage, plant or animal infestation or disease, for
which a state of emergency has been declared by the President
of the United States or the Governor of California.
2) Revises the definition of a "local emergency" to mean a
natural or manmade disaster or emergency caused by conditions
such as, but not limited to, air pollution, earthquake, fire,
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flood, storm, epidemic, riot, drought, sudden and severe
energy shortage, plant or animal infestation or disease, for
which a local emergency has been declared by an official,
board, or governing body vested with authority to make such a
declaration in any city, county, or city and county in
California.
3) Applies the definitions above, throughout the criminal price
gouging statute and also includes the transportation of
persons and towing services in the crime of price gouging
during a declared emergency. Additionally, this bill
specifies that criminal price gouging during a declared
emergency includes any rental housing with an initial lease
term of up to one year.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified8/2/16)
Office of Attorney General Kamala D. Harris
Consumer Attorneys of California
OPPOSITION: (Verified8/2/16)
California Public Defenders Association
ASSEMBLY FLOOR: 68-10, 5/9/16
AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bigelow,
Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,
Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Roger Hernández, Holden,
Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, McCarty, Medina, Melendez, Mullin,
AB 2820
Page 7
Nazarian, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas,
Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond,
Ting, Weber, Wilk, Williams, Wood, Rendon
NOES: Travis Allen, Chávez, Gatto, Hadley, Harper, Jones,
Mayes, Obernolte, Wagner, Waldron
NO VOTE RECORDED: Beth Gaines, Eduardo Garcia
Prepared by:Molly Lao / PUB. S. /
8/3/16 19:11:05
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