CaliforniaSB 13652025-2026 Regular SessionSenateWALLET

Price gouging.

Sponsored By: Benjamin Allen (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 2 benefits, 1 costs, 6 mixed.

Emergency rent caps cover more rentals

For 30 days after an emergency declaration, and during extensions, rent generally cannot exceed its legal baseline by more than 10%. Coverage includes rental homes, mobilehome park spaces, and campground spaces, regardless of the first lease's length. For housing rented or offered during the prior year, the baseline is actual rent paid or the most recent rent offered. Otherwise, it is 160% of the federal housing department's fair market rent; specified fully furnished rentals allow a 5% adjustment. Housing first offered at a daily rate after the declaration, with no daily-rate offer during the prior year, uses one-thirtieth of that fair-market-rent benchmark. Existing mobilehome tenants keep local rent-control protections; new tenants in rent-controlled parks use the last rent charged for a space in that park. Unoccupied mobilehome spaces outside local rent control use the last rent charged. Added goods or services cannot raise the baseline, and the law does not authorize rent above local rent-control limits.

Renters protected from higher-rent eviction schemes

For 30 days after an emergency declaration, landlords cannot evict tenants and re-rent their homes above the evicted tenant's allowed rent. This protection continues during extensions. Evictions lawfully started before the declaration can continue. The law also allows evictions for other lawful reasons; it is not a blanket eviction ban.

Emergency hotel rates face price caps

For 30 days after an emergency declaration, hotels and motels generally cannot raise regular rates by more than 10%. The baseline is the rate advertised immediately before the declaration. Operators must prove defenses based on added goods or labor costs, regularly scheduled seasonal changes, or previously contracted rates. These defenses can allow rates above the general cap.

Emergency price limits protect household purchases

After a presidential, California, or local emergency declaration, covered prices generally cannot exceed pre-emergency prices by more than 10% for 30 days. Covered purchases include food, emergency and medical supplies, building materials, fuel, and transportation, freight, and storage services. Sellers without a prior price cannot charge more than 50% above cost. Sellers must prove defenses based on higher supplier costs or qualifying labor and material costs. The labor-and-material defense limits prices to 110% of total cost plus the seller's usual pre-emergency markup. Violations carry up to one year in county jail, a $10,000 fine per violation, or both; civil and administrative remedies also apply. Across these rules, Section 1.5's combined amendments operate only if both SB 1365 and SB 493 are enacted and effective by January 1, 2027, both amend Penal Code Section 396, and SB 1365 is enacted last.

Emergency repair prices capped for homeowners

For 180 days after an emergency declaration, licensed contractors generally cannot charge over 10% above pre-emergency repair prices. The cap covers repair, reconstruction, and emergency cleanup services, and it can be extended. Contractors must prove defenses based on supplier costs or qualifying labor and material costs. For the labor-and-material defense, prices cannot exceed 110% of total cost plus the contractor's usual pre-emergency markup.

Longer price protections can allow increases

Local governing bodies, local officials, the Governor, or the Legislature can extend emergency price protections. Extensions must be needed to protect life, property, or public welfare. Each local extension can last no more than 30 days. An extension can also allow specified price increases above the usual emergency limit.

Recent repairs can justify higher rent

Landlords can defend rent above the emergency cap using repair or improvement costs beyond normal maintenance. The costs must come from the year before the emergency declaration. The housing must have been rented, advertised, or offered for rent when those costs arose. Alternatively, landlords must prove a plan already existed within the preceding year to offer it within six months of the work. Rent increases agreed to by contract before the declaration also remain allowed.

Sale prices need not set caps

Businesses can use their usual price when an item or service was discounted immediately before an emergency declaration. They do not have to use the temporary sale price to calculate the emergency cap. This applies to covered goods, services, and contractor work. It can allow households to pay more than a cap based on the sale price.

War price protections require state findings

During a declared war emergency, price protections cover only essential goods or services identified by California's Attorney General. A written opinion must find a sufficient link between the war and price increases. The protections and penalties apply for 30 days after the declaration. Extensions can add 30-day periods and allow specified higher prices.

Sponsors & Cosponsors

Sponsor

Benjamin Allen
Democratic • Senate

Cosponsors

Ash Kalra
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 156 • No: 50

House vote • 8/31/2026

SB 1365 Allen Senate Third Reading By Kalra

Yes: 48 • No: 19

Senate vote • 8/31/2026

Unfinished Business SB1365 Allen et al. Concurrence

Yes: 28 • No: 10

House vote • 8/13/2026

Do pass as amended.

Yes: 11 • No: 3

House vote • 6/30/2026

Do pass and be re-referred to the Committee on [Appropriations]

Yes: 5 • No: 1

House vote • 6/16/2026

Do pass and be re-referred to the Committee on [Public Safety]

Yes: 8 • No: 3

Senate vote • 5/27/2026

Senate 3rd Reading SB1365 Allen

Yes: 29 • No: 9

Senate vote • 5/14/2026

Do pass as amended

Yes: 5 • No: 2

Senate vote • 5/4/2026

Placed on suspense file

Yes: 7 • No: 0

Senate vote • 4/21/2026

Do pass, but first be re-referred to the Committee on [Appropriations]