Several new laws passed by the California State Assembly and signed by Governor Gavin Newsom will take effect next month and will be implemented statewide. The bills that will take effect on July 1 include banning the charging of hidden fees, mandating the provision of rape drug test kits in entertainment establishments, guaranteeing consumers’ right to repair devices, and limiting rental deposits. We have summarized the key contents of these bills.
■ Prohibition of imposition of ‘hidden fees’ (SB 478) This bill, called the Unfair Advertising Prohibition Act, hides various additional fees when providing goods or services such as restaurants or hotels, and then suddenly charges them at the final payment timing to exaggerate the cost. It contains provisions prohibiting sales methods. If there are various fees, the company is required to notify guests in advance that additional fees will be charged.
Actual costs must be indicated in advertisements and menus. This is to prevent so-called ‘hidden fees’ and ‘junk fees. For example, ’employee service audit fees’ for restaurants, ‘kitchen staff wellness insurance premiums’, ‘resort fees’ for hotels, baggage fees for airlines, insurance fees for rental cars, performance ticket reservation fees, food delivery fees, etc. in various industries. It covers.
■ Mandatory drug testing kits for bars (AB 1013) Targets businesses that have received a liquor sales license (Type 48), which is issued to bars and nightclubs for the sale of beer, wine, and spirits, and these businesses are subject to date rape drug testing kits. Provide it at a reasonable price or for free. In addition, businesses must post a notice in a conspicuous location indicating that the tester can be used and should not handle testers that have expired or have expired the recommended use period. The California Liquor Control Board (ABC) announced that approximately 2,400 businesses across the state, including nightclubs, bars, and taverns, would be subject to this measure and warned that failure to comply would result in administrative action affecting their licenses. The drugs covered include, but are not limited to, flunitrazepam, ketamine, and gamma hydroxybutyric acid, the bill states. Although ABC conducts inspections, it does not supply testing machines or recommend specific companies.
■ Apartment Rent Deposit Restrictions (AB 12) Prohibits landlords from requesting or receiving security deposits for residential real estate rental contracts in an amount exceeding one month’s rent or equivalent, regardless of whether the residential property is furnished. do. The existing law allowed for up to two months’ worth for unfurnished units and up to three months’ worth for furnished units. However, for small building owners, the period is 2 months. A small building owner is a natural person or limited liability company (LLC) and a landlord who owns two or fewer residential rental properties and a residential building with a total of four units or less.
■ Imposition of a gun tax (AB 28) The main point is that starting next month, an 11% tax will be imposed on dealers and manufacturers on the sale of guns, ammunition, and gun-related parts sold in California. As a result, California will impose a sales tax on firearms. It became the first state in the country to impose such a tax. Through the implementation of this bill, the California government is expected to receive $160 million in annual tax revenue, which will be used for gun violence prevention and school safety programs.
■ Expanding the mandatory provision of sanitary products (AB 367) This is a bill that requires sanitary pads or tampons to be provided free of charge in restrooms in public schools in grades 6 to 12, community colleges, and public universities starting from the 2022-23 school year. The scope is expanded and added to the 5th grade.
■ Consumers’ Right to Repair (SB 244) It states that for devices sold in California that cost more than $50, manufacturers are required to provide manuals and parts or tools necessary for repair for a certain period. Prices from $50 to $99.99 must be provided for 3 years and amounts over $100 must be provided for 7 years. It broadly covers mobile phones, laptops, tablets and various electronic and home appliances, but does not apply to alarm systems or video game consoles.