BILL ANALYSIS Ó
AB 2820
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
2820 (Chiu)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: |68-10 |(May 9, 2016) |SENATE: |31-0 |(August 23, |
| | | | | |2016) |
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Original Committee Reference: PUB. S.
SUMMARY: Revises the definition of state of emergency and local
emergency for purposes of criminal price gouging. Specifies
that criminal price gouging includes rental of any housing with
an initial lease of up to one year for purposes of criminal
price gouging; includes towing services in the criminal price
gouging during a declared emergency.
The Senate amendments:
1)Remove the service of transportation of persons from the crime
of price gouging during a declared emergency.
2)Revise the definitions of a state of emergency and a local
emergency to mean a natural or manmade emergency resulting
from an earthquake, flood, fire, riot, storm, drought, plant
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or animal infestation or disease, 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 of
California or for which a local emergency has been declared by
an official, board, or other governing body vested with
authority to make such a declaration in any city, county, or
city and county in California, respectively.
3)Make conforming changes.
4)Make technical and non-substantive changes.
EXISTING LAW:
1)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%
above the price charged by that person for those goods or
services immediately prior to the proclamation of emergency.
2)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 county,
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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% above the price charged
by that person for those services immediately prior to the
proclamation of emergency.
3)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%.
4)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.
5)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.
6)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 $10,000, or
by both that fine and imprisonment.
7)Specifies that the conduct described above shall constitute an
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unlawful business practice and an act of unfair competition.
8)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."
9)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."
10)Defines "Housing" as "any rental housing leased on a
month-to-month term" for purposes of criminal price gouging.
11)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.
12)Specifies that the notice, when served upon the tenant, shall
in and of itself operate and be effectual to create and
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.
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13)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
b) By serving a copy by mail under the procedures as
specified.
14)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.
AS PASSED BY THE ASSEMBLY, this bill:
1)Revised 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)Revised 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, 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.
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3)Applied the definitions above, throughout the criminal price
gouging statute.
4)Included the transportation of persons and towing services in
the crime of price gouging during a declared emergency.
5)Specified that criminal price gouging during a declared
emergency includes any rental housing with an initial lease
term of up to one year.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: According to the author, "Following the devastating
Aliso Canyon gas leak, unscrupulous individuals took advantage
of a tragic loophole in current law and raised the prices of
housing and services. AB 2820 updates current law to ensure
that whether the disaster prompting the declaration of a state
of emergency is natural or manmade, familiar or totally
unprecedented, consumers across the state will be protected from
excessive price increases. Disaster victims should not be
victimized twice."
Analysis Prepared by:
David Billingsley / PUB. S. / (916) 319-3744
FN: 0004810
AB 2820
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