In the days leading up to his Oct. 13 deadline to approve or veto legislation this year, Gov. Gavin Newsom signed hundreds of bills into law, including several measures affecting California’s rental housing industry.
Among those signed were bills clarifying how state antitrust laws apply to AI-powered pricing tools, expanding flexibility in returning security deposits, defining new habitability requirements, and limiting evictions when Social Security payments are delayed. Newsom signed each of the following bills into law on Oct. 6:
Landlords gain flexibility on security-deposit refunds
AB 414 by Assembly member Gail Pellerin, D-Santa Cruz, allows landlords and tenants to agree at any time — rather than only after a move-out notice—on how deposit refunds and itemized statements will be sent, including through electronic means. It also clarifies procedures when multiple tenants share a lease.
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Eviction limits tied to Social Security payment delays
AB 246 by Assembly member Isaac G. Bryan, D-Los Angeles, restricts evictions when tenants miss rent due to a verified interruption in their Social Security benefits. The final version of the bill — amended after CAA opposition to its original rent-freeze provisions—applies only to Social Security payment delays that are not the tenant’s fault and remains in effect through Jan. 20, 2029.
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Law adds stove and refrigerator to habitability requirements
AB 628 by Assembly member Tina McKinnor, D-Inglewood, requires rental units to include a working stove and refrigerator beginning Jan. 1, 2026. CAA secured amendments removing an earlier mandate to replace appliances every 10 years, regardless of condition.
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Antitrust law updated for the AI era
This legislation clarifies that California’s Cartwright Act applies to the collusive use of pricing algorithms, including those used to analyze or recommend rent levels. AB 325 by Assembly member Cecilia Aguiar-Curry, D-Winters, makes it unlawful to use or distribute a “common pricing algorithm” that restrains trade or coerces competitors to align prices. CAA moved to a neutral position after amendments clarified the bill’s intent.
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