California SB 1365: Emergency Rent Price-Gouging Bill Is Pending With the Governor
California SB 1365 is enrolled and pending with the Governor. It would expand Penal Code section 396 housing coverage and change how some emergency price-gouging defenses work. It is not current law unless enacted.
The short answer
STATUS: ENROLLED / PENDING WITH THE GOVERNOR — NOT CURRENT LAW. California Legislative Information lists SB 1365 as an active enrolled bill. The official history says it was enrolled September 8, 2026 and presented to the Governor on September 10, 2026.
If enacted, SB 1365 would amend Penal Code section 396, including the emergency price-gouging rules that can apply to rental housing. Until an official signature and chaptering record appears, landlords and renters should continue using current law and any controlling emergency proclamation rather than treating the enrolled bill as an operative rule.
What SB 1365 would change for the definition of housing
The enrolled Legislative Counsel's Digest says current section 396 defines housing for these price-gouging provisions as rental housing with an initial lease term of no longer than one year. SB 1365 would expand that definition to include rental housing without regard to the length of the initial lease term.
That is a material scope change if the bill becomes law. It should not be applied today merely because the Legislature passed the measure; enactment status controls whether the proposed text becomes operative law.
The bill would also change some defenses
The enrolled text would recast certain existing exceptions as affirmative defenses. For rental housing, the bill describes an affirmative defense when an increase is directly attributable to qualifying repair or addition costs incurred within the year before the emergency proclamation or declaration and specified conditions are met.
This is not a general permission to exceed another rent limit. The enrolled text also states that the emergency-price-gouging subdivision does not authorize rent above an amount permitted by a local rent-control ordinance.
The familiar 10% emergency figure still requires a real emergency trigger
Existing Penal Code section 396 contains a 10% emergency rental-price restriction when the statutory trigger and time period apply. A bill changing section 396 does not itself create an emergency, extend an emergency, or prove that the rule applies to a particular property on a particular date.
Check the exact state or local emergency declaration, its effective dates and any extension, suspension or special language. Max Rental Tools' separate El Niño emergency article is an example of why the proclamation itself matters: the September 21, 2026 statewide El Niño proclamation expressly suspended section 396 restrictions for that event at that time.
What landlords should do while the bill is pending
Do not rewrite notices, rent calculations or emergency procedures as though SB 1365 has already taken effect. Keep using current Penal Code section 396, controlling local rent rules, the lease and the actual emergency order that applies to the property.
At the same time, compliance teams can flag SB 1365 for a near-term legislative-status check. If the Governor signs it, review the chaptered text, effective date and any implementation guidance before changing forms, policies or training materials.
What renters should verify before relying on a headline
A headline saying California 'expanded emergency rent protections' is premature while the bill remains enrolled and pending. Open the official California Legislative Information status page and confirm whether the measure has been signed, vetoed or otherwise acted on.
For a current rent dispute during an emergency, separately verify whether section 396 is active for that declaration and whether another state, local or subsidized-housing rule imposes a lower or different limit.
If the Governor acts, update this canonical—not a duplicate page
The next meaningful milestone is an official Governor action or chaptering record. If enacted, this guide should be updated with the chapter number, effective date and final operative text. If vetoed, it should be updated to CLOSED / VETOED rather than leaving a stale 'pending' article online.
This article is a legislative-status guide, not legal advice and not a substitute for reading the current statute and the emergency declaration that applies to the specific property.
Common questions
Is California SB 1365 law yet?
No as of September 22, 2026. California Legislative Information lists SB 1365 as an active enrolled bill located with the Governor, and its history says it was presented to the Governor on September 10.
Would SB 1365 change which rentals are covered by emergency price-gouging rules?
If enacted, the enrolled bill would expand the statutory definition of housing for section 396 so it is not limited by the length of the initial lease term.
Does SB 1365 mean every California rent increase is capped at 10%?
No. Emergency price-gouging rules require an applicable emergency trigger and time period, and ordinary state or local rent restrictions can separately control. The pending bill itself does not activate an emergency rule.
What should I check next?
Recheck the official California Legislative Information status page for a Governor action, then read the chaptered text and effective date if the bill is enacted.
Official sources
California Legislative Information — SB 1365 Bill StatusCalifornia Legislative Information — SB 1365 Enrolled Bill TextCalifornia Attorney General — Price Gouging FAQContinue your check
Use the state directory for current jurisdiction-specific rules, calculate the proposed increase, then prepare the appropriate rental document only after the legal-rule checks are complete.