Good morning. It’s Monday, July 1. Here’s what you need to know to start your day.
Brush up on California’s now-active laws
Gov. Gavin Newsom signed off on nearly 900 new laws passed by California legislators last year. Most took effect at the beginning of 2024, but some others align with the fiscal year, which begins today.
New rules on the Golden State’s books address an array of issues, including preventing workplace violence, addressing housing affordability, mandating date-rape drug testing kits in bars, and making it easier to repair electronic devices yourself.
“The list mostly reflects the politics and interests of the Democrats, who hold a supermajority of seats in the state Assembly and Senate,” writes Times reporter Laura J. Nelson.
Here is a brief overview of a few of the laws that take effect today.
Revealing hidden fees
No one likes surprises on their bills. Senate Bill 478 aims to expose hidden fees encountered when paying for hotels, concerts, food delivery and other services.
Many service and travel businesses must now include surcharges (such as cleaning fees at short-term rentals, venue fees at concerts, resort fees at hotels) in advertised prices. A similar law, Assembly Bill 537, requires that hotels and short-term-rental companies show customers the total price before checkout (minus government taxes and fees).
“The laws have already led to some national changes,” Laura noted, “including hotel websites that now display the total price for each stay before taxes, and a ‘total before taxes’ search option on Airbnb.”
SB 478 was written to also include restaurants and bars that add service fees to patrons’ bills. But over the weekend Newsom signed an emergency measure that exempts vendors from the new law. Restaurants and bars can still add surcharges, so long as they’re listed clearly for diners to see ahead of time.
A new state tax on gun purchases
A sales associate arranges guns on display at Burbank Ammo & Guns in Burbank. (Jae C. Hong / Associated Press)
AB 28 places an 11% excise tax on many sales of firearms, ammunition and gun parts, making it the first U.S. state to do so (the federal government already taxes many gun purchases).
The new tax is expected to generate $159 million in the first year, according to state budget analysts. That revenue will fund state programs for gun violence prevention and gang intervention.
There are some exemptions, though. Active and retired police officers and law enforcement agencies won’t face the new tax. Neither will small-scale vendors who report less than $5,000 in quarterly sales.
Limits on security deposits for renters
Starting today, landlords cannot charge their tenants more than one month’s rent as a security deposit.
AB 12 marks a notable change from the previous rules, which allowed deposits to be up to twice the monthly rent for an unfurnished unit and up to three times the rent for a furnished one.
The bill’s author, Assemblymember Matt Haney (D-San Francisco), said high security deposits create barriers for affordable housing, which more Californians are feeling as rents increase across the state.
The law faced opposition from some Republicans and moderate Democrats, who argued it could hurt property owners financially.
Landlords who own no more than two properties with four or fewer units are exempt from the new rules.
You can read more from Laura on the state’s newest laws.
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