5 New CA Laws That Will Affect Your Wallet

A slew of new laws that took effect this week, will impact most California consumers.

State legislators penned bills that protect Californians from everything from auto-renewing subscriptions, exorbitant pet insurance premiums to hidden fees at Airbnbs and more. Meanwhile, other new rules that took effect Tuesday could raise prices at the pump.

New legislation typically becomes active on July 1 since that date aligns with the state's fiscal year, which runs from July 1 to June 30.

Here are the wide-ranging bills that will impact your wallet beginning this summer.

Crackdown On Pet Insurance Rate Hikes

Among the new laws impacting consumers on July 1 is Senate Bill 1217, which will require pet insurers to provide exact and very specific reasons for increasing premiums.

The new law requires insurers to clearly disclose how premiums fluctuate with a pet’s age or location. They must also list any policy exclusions for pre‑existing conditions and explain waiting periods and required exams.

Short-Term Rentals Must Do Away With 'Hidden Fees'

AB 2202, authored by Democrats Anthony Rendon and Marc Berman, requires hotels, motels and short-term rental platforms like Airbnb and VRBO to disclose cleaning fees or any other additional fees upfront. The rule applies to any advertising, display or public-facing offer.

Violators of this new law, which bans "hidden fees," could be subject to a civil penalty up to $10,000.

Former Assembly speaker Rendon said the bill was inspired by a large family trip to Tahoe, where he and his sister discovered last minute that they would need to scramble to accomplish a long list of cleaning tasks after other members of their party had already left.

“We thought, ‘crap, we wish the three other carloads hadn’t left,’” he said, according to Politico. “All that would’ve been fine if we had budgeted it into our day, if we had known ahead of time.”

The consumer protection law comes after widespread reports of vacationers being forced to pay exorbitant cleaning fees that have come along with large cleaning lists that require guests to do things like mop the floors or take out the trash.

CA Imposes 'Click-To-Cancel' Rule For Subscriptions

Now, consumers in California will be able to get out of paid subscriptions a lot easier than they could before. AB 2863 will require companies to cancel subscriptions through the same medium or method a person used to subscribe.

The Federal Trade Commission also mirrored the Golden State's new law in October, enacting a similar click-to-cancel policy to crack down on companies offering continuous subscriptions for gyms, streaming services and more.

Gas Prices Could Rise With New Climate Law

A controversial Low Carbon Fuel Standard took effect on Tuesday. The voter-approved rule has drawn fierce Republican scrutiny over its potential to raise gas prices.

The new law, designed to fight climate change and improve air quality by reducing harmful gases, will strengthen requirements for cleaner fuels and expand a $2 billion credit market aimed at lowering emissions from cars, trucks, and freight.

While no immediate price increases at the pump are anticipated, experts caution that future impacts remain uncertain, as they will depend on how much the oil industry spends to buy emission credits — and whether those costs get passed onto consumers.

The previous version of this law, enacted in 2011, added 9 cents per gallon to fuel costs. According to a UC Davis researcher, the 2025 law could increase prices by 5 to 8 cents per gallon.

But Gov. Gavin Newsom has refuted this claim in a fact-check memo defending the new law. Meanwhile, Sen. Brian Jones has requested an audit of the law and has said it is nothing short of "price gouging by Newsom, hitting Californians where it hurts the most.”

California Insurance Companies Must Cover Fertility Treatments

SB 729 was penned to strengthen access to fertility treatments and diagnoses as well as in-vitro fertilization, which is commonly called IVF.

The law will require insurance companies to provide coverage for such treatments. Access will also be expanded to LGBTQ+ families.

"It's simple: everyone who wants to should be able to start a family — without going broke," Newsom said.

Last year, the Alabama Supreme Court ruled that frozen embryos created and stored for IVF are children, a decision that many feared could limit fertility treatments in the state and spur more implications nationwide.

"As Republicans across the country continue to claw back rights and block access to IVF – all while calling themselves ‘the party of families’ – we are proud to help every Californian make their own choices about the family they want," Newsom said.