5 New Laws That Kick In Today — And How They'll Impact Californians' Pocketbooks

CALIFORNIA — Consumers cheered when Gov. Gavin Newsom signed into law a ban on hidden fees that covered everything from concert tickets to dinner bills, which took effect Monday. But now advocates are fuming after the governor over the weekend approved an emergency exemption for restaurants. Eateries are allowed to continue tacking on extra charges that can mean a burger listed for $15 on the menu actually costs much more.

The pair of bills are among several taking effect Monday that will impact Californians' pocketbooks.

Extra Fees At Restaurants Are Here To Stay

In recent years, restaurants around the country and in California have embraced fees added on to diners' bills, ostensibly to cover rising costs. Traditionally, diners expect pricing to be clearly reflected on the menu.

But under this new paradigm, the breakfast sandwich listed for $15.25 on All Day Baby's menu doesn't actually cost $15.25. When the bill comes, diners see an extra 3 percent "kitchen love" charge, which the Los Angeles restaurant says is to "benefit the folks feeding us." Though it's automatically applied to the bill, the restaurant's website says the charge is optional.

Those kinds of fees were targeted under SB 478. Signed into law in October. That law also prohibits concert-ticket vendors from tacking on extra service fees at checkout as well as hidden fees charged by other businesses, including hotels and short-term rentals such as Airbnb.

But after pushback from the restaurant industry, the Legislature put together an emergency carveout that exempts restaurants from the hidden-fees ban.

“We’re the most regulated of any business out there, and we are struggling to survive in the broken system that has been handed to us throughout many, many decades,” the Independent Hospitality Coalition's Eddie Navarrette told the Los Angeles Times. “When you add more regulations, whatever it may be, it makes things more difficult. Things are already difficult … there is a mass exodus of our small-restaurant community. I think it’s a huge relief, just to have one less thing being thrown at them right now.”

But consumer advocates are finding the restaurant exemption hard to swallow. They say the practice amounts to the trickery of diners.

“It’s confusing why the restaurants are claiming that they need to do things differently because it just feels like they’re saying that they need to hide the cost of their food for us, and that doesn’t feel right,” Jenn Engstrom, state director of the California affiliate of the Public Interest Research Group told the Times.

The emergency bill, approved by Newsom on Saturday, requires restaurants to clearly post any additional fees. But diners will still need to do the math to determine the actual cost of their meals.

The older bill, approved in the fall, remains intact for other businesses, which means that things like concert tickets should be more transparently priced starting on Monday.

Curb On Planned Obsolescence

The idea behind California's Right to Repair Act is that electronic devices and appliances should be easier and cheaper to fix. Advocates say it's an attempt to undo the modern adage of "they don't make them like they used to."

Manufacturers are now required to provide consumers and repair facilities with documentation, tools and replacement parts for electronics and appliances. The manufacturers' obligations extend for three years for products priced at $50 to $99.99 and seven years for goods over $100.

“Right now, we mine the planet’s precious minerals, use them to make amazing phones and other electronics, ship these products across the world, and then toss them away after just a few years’ use. What a waste. We should make stuff that lasts and be able to fix our stuff when it breaks, and now thanks to years of advocacy, Californians will finally be able to, with the Right to Repair," CALPIRG Director Jenn Engstrom said in a statement.

Similar laws are on the books in New York, Minnesota, and the European Union.

New Tax On Guns

Firearms and ammunition sales will now be hit with an additional 11 percent excise tax as part of AB 28.

Officials expect the tax to generate over $150 million annually, with funds earmarked for school safety and violence prevention programs, including efforts to prevent school shootings, bolster firearm investigations, reduce violence and remove guns from domestic abusers' possession.

"It’s beyond shameful that gun manufacturers are reaping record profits at the same time that gun violence has become the leading cause of death for kids in the United States. The Gun Violence Prevention and School Safety Act will help to ensure that we have the tools and resources necessary to better protect our kids and our communities," author Assemblymember Jesse Gabriel said.

Relief From Sky-High Security Deposits

Landlords are now prohibited from requiring renters from paying a security deposit that exceeds an amount equal to one month of rent.

Non-corporate landlords who own only one or two rental properties that total no more than four units will be allowed to require up to two months rent as a security deposit in many cases.

Cutting Red Tape On New Home Construction

SB 684 aims to reduce some of the red tape that complicates the process of building housing developments. As the state continues to grapple with a housing shortage and a crisis of affordability, advocates hope the new rules will help lower housing costs.

The law requires cities and counties to approve ministerially — without public hearings or votes — certain subdivision projects in urban areas that include 10 or fewer housing units in many cases.

"This bill enables the construction of more homes for sale on a single parcel of land as long as the appropriate legal assurances and protections are provided," the bill's author, Assemblymember Juan Carrillo said. "By increasing the supply of small, low-cost, homes for sale, SB 684 opens the door to generational wealth for so many who have historically been excluded from achieving the California Dream.”

Read about four other new laws that take effect July 1.