Price gouging.

Senator Smallwood-Cuevas's price gouging legislation mandates new partnerships between the California Department of Justice and local prosecutors to enforce existing restrictions on price increases during declared emergencies. The measure builds upon current law that prohibits businesses from raising prices more than 10% on essential goods and services for 30 days following emergency declarations.

The enforcement partnerships will oversee price controls on a broad range of items including food, medical supplies, building materials, emergency supplies, transportation services, and housing rentals. Businesses can exceed the 10% cap only if they demonstrate that supplier costs or labor expenses directly caused the increase. For items not previously sold, vendors cannot charge more than 50% above cost.

The bill maintains existing penalties that classify violations as misdemeanors punishable by up to one year in jail and $10,000 in fines. Local jurisdictions will receive state reimbursement for costs associated with the expanded enforcement duties, as determined by the Commission on State Mandates.