SB 1365: Price gouging.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 price gouging, 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%.

This bill would instead make it an affirmative defense to charge of price gouging pursuant to that provision if an 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.

Existing law also makes the imposition of various other price increases 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, price gouging. Existing law exempts certain price increases from these provisions.

This bill would instead frame those exemptions as affirmative defenses.

Existing law defines housing for these purposes as any rental housing with an initial lease term of no longer than one year.

This bill would expand the definition of “housing” to include any rental housing without regard to the length of the initial lease term.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 30, 2026Chaptered by Secretary of State. Chapter 1028, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 10, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 31, 2026Assembly amendments concurred in. (Ayes 27. Noes 10.) Ordered to engrossing and enrolling.
5. August 31, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 31, 2026Read third time. Passed. (Ayes 48. Noes 19. Page 7007.) Ordered to the Senate.
7. August 20, 2026Ordered to third reading.
8. August 20, 2026Read third time and amended.
9. August 17, 2026Read second time. Ordered to third reading.
10. August 13, 2026Read second time and amended. Ordered to second reading.
11. August 13, 2026From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 13).
12. August 13, 2026Assembly Rule 63 suspended.