BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                         Senator Joseph L. Dunn, Chair
                           2005-2006 Regular Session


          AB 1400                                                A
          Assembly Member Laird                                  B
          As Amended April 11, 2005
          Hearing Date: June 28, 2005                            1
           Civil Code                                            4
          GMO                                                    0
                                                                 0

                                     SUBJECT
                                         
               Unruh Civil Rights Act:  Marital Status and Sexual  
                                  Orientation


                                   DESCRIPTION  

          The Unruh Civil Rights Act (Act) provides that all persons,  
          regardless of their sex, race, color, religion, ancestry,  
          national origin, disability, or medical condition are  
          entitled to the full and equal accommodations, advantages,  
          facilities, privileges and services in all business  
          establishments of every kind.  This bill would clarify that  
          marital status and sexual orientation are among the  
          characteristics that are protected against discrimination  
          by business establishments under the Act.

          The bill would also import into the Unruh Civil Rights Act  
          definitions of the terms "disability," "religion," "sex,"  
          and "sexual orientation" from the Fair Employment and  
          Housing Act (FEHA), and include, in enumerating the above  
          characteristics, the perception of those characteristics  
          and association with a person who has or is perceived to  
          have those characteristics as being within the protected  
          categories.  These definitions would be integrated into  
          other related provisions of the Act.

          The bill contains legislative findings and declarations  
          regarding the Unruh Civil Rights Act and the courts'  
          consistent interpretation that the categories enumerated in  
          the Act are illustrative rather than restrictive, and  
                                                                 
          (more)



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          further declares the Legislature's intent that the  
          enumerated bases in the Act continue to be construed as  
          illustrative rather than restrictive.

          The bill would further declare that it does not intend to  
          affect the California Supreme Court's holding in  Marina  
          Point, Ltd.  v.  Wolfson  (1982) 30 Cal.3d 721.

          (This analysis reflects author's amendments to be offered  
          in committee.)
                                         
                                   BACKGROUND 

          The Supreme Court of California has consistently upheld  
          that the Unruh Civil Rights Act provides broad protection  
          to all persons who are arbitrarily discriminated against by  
          business establishments of every kind whatsoever.   
          Beginning with  Stoumen  v.  Reilly (1951) 37 Cal. 2d 713  
          (where the court found the State Board of Equalization  
          acted illegally by suspending the license of a bar and  
          restaurant merely because it allowed patronage by gay  
          people whom the licensor saw as "immoral), through  In re  
          Cox  (1970) 3 Cal. 3d 205 (holding that the Unruh Civil  
          Rights Act forbids a business establishment generally open  
          to the public from arbitrarily excluding a prospective  
          customer) and  Marina Point, Ltd.  v.  Wolfson  (1982) 30 Cal.  
          3d 721 (a landlord's "no children" policy was arbitrary  
          discrimination based on familial status that violated the  
          Act) to  Harris  v.  Capital Growth Investors XIV  (1991) 52  
          Cal. 3d 1142 (affirming Unruh Act's protection of  
          individuals with "personal characteristics" that some  
          business owners might find "unwelcome" or "distasteful"  
          such as having young children, having an unconventional  
          appearance, or being gay), the Court has declared, time and  
          again, that the Act's enumeration of characteristics on  
          which discrimination by a business establishment may not be  
          based, is illustrative and not restrictive.  

          Yet, according to Lambda Legal, a proponent of AB 1400,  
          despite the Supreme Court's statement more than half a  
          century ago that discrimination based on sexual orientation  
          is unlawful in this state, this legal assistance  
          organization routinely receives calls from individuals and  
          attorneys who are having difficulty enforcing the  
          protection because it is not enumerated specifically in the  
                                                                       




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          Civil Code.  This group states that this year alone, its  
          Los Angeles office received nearly 50 complaints of public  
          accommodations discrimination based on sexual orientation,  
          gender identity, marital status and/or HIV status.  The  
          complaints "concerned the broad range of transactions by  
          which we all live our daily lives - grocery shopping,  
          banking, car repair, shopping for shoes and clothing,  
          dental and medical visits, restaurant dining, exercising at  
          health clubs, and computer repair services?It is impossible  
          to know the full scope of the harassment and exclusion that  
          persists despite California's longstanding and sincere  
          commitment to making this state a place in which everyone  
          is treated equally, without arbitrary discrimination, by  
          commercial enterprises."

          This bill would add to the list of characteristics already  
          in the Unruh Civil Rights Act on which discrimination by  
          business establishments may not be based, marital status  
          and sexual orientation.  It would make conforming changes  
          in other Civil Code provisions related to the Act.



           
                            CHANGES TO EXISTING LAW
           
           Existing law  , the Unruh Civil Rights Act, provides that all  
          persons within the jurisdiction of this state are free and  
          equal, and no matter what their sex, race, color, religion,  
          ancestry, national origin, disability, or medical condition  
          are entitled to full and equal accommodations, advantages,  
          facilities, privileges, or services in all business  
          establishments of every kind whatsoever. [Civil Code  51.]  
          [ All further statutory references are to the Civil Code  
          unless otherwise noted.]

           Existing law  extends the prohibition against discrimination  
          as provided in the Unruh Civil Rights Act to a person who  
          is perceived to have one or more of the characteristics  
          enumerated in the Act or because the person is associated  
          with a person who has or is perceived to have any of those  
          characteristics. [ 51.5.]

           Existing case law  prohibits other forms of arbitrary  
          discrimination, including specifically sexual orientation  
                                                                       




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          discrimination, in business establishments under the Unruh  
          Act. [  Stoumen  v.  Reilly  , supra;  Hubert  v.  Williams  (1982)  
          133 Cal.App.3d Supp. 1, 5;  Rolon v.  Kulwitzky  (1984) 153  
          Cal.App.3d 289;  Harris  v.  Capital Growth Investors XIV  ,  
          supra.]  

           Existing law  also prohibits discrimination on the basis of  
          age, children, familial status, and marital status, except  
          that certain housing may be reserved for senior citizens.  
          [ 51.2; Government Code  12955(a);  Marina Point, Ltd.  v.  
           Wolfson  , supra.]

           Existing law  provides that all persons within the  
          jurisdiction of this state have the right to be free from  
          any violence, or intimidation by threat of violence,  
          committed against their persons or property because of  
          their race, color, religion, ancestry, national origin,  
          political affiliation, sex, sexual orientation, age,  
          disability or position in a labor dispute or because  
          another person perceives them to have one or more of those  
          characteristics. [ 51.7.]

           Existing law  provides that no franchisor shall discriminate  
          in the granting of franchises solely because of the race,  
          color, religion, sex, national origin, or disability of the  
          franchisee and the racial, ethnic, religious, national  
          origin, or disability composition of a neighborhood or  
          geographic area in which the franchise is located. [  
          51.8.]

           Existing law  also provides that every provision in a  
          written instrument relating to real property which purports  
          to forbid or restrict the conveyance, encumbrance, leasing  
          or mortgaging of that real property to any person of a  
          specified sex, race, color, religion, ancestry, national  
          origin, or disability, is void and every restriction or  
          prohibition as to the use of occupation of real property  
          because of the user's or occupier's sex, race, color,  
          religion, ancestry, national origin, or disability is void.  
          [ 53.]

           This bill  would add, to the enumerated characteristics that  
          are protected under   51, 51.5, 51.7, 51.8, and 53,  
          sexual orientation and marital status.
          
                                                                       




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           The bill  would import into the Unruh Civil Rights Act  
          definitions of the terms "disability," medical condition,"  
          "religion," "sex," and "sexual orientation" from the Fair  
          Employment and Housing Act definitions of those terms.  It  
          would specify that the characteristics listed include the  
          perception that a person has any of those characteristics  
          or that the person is associated with another person who  
          has any of those characteristics.

           The bill  contains legislative findings and declarations  
          relating to the history of the Unruh Civil Rights Act, and  
          declaring that the additions made to the Act by this bill  
          are declaratory of existing law and that the enumeration of  
          characteristics by the Act is illustrative rather than  
          restrictive.

                                     COMMENT
           
          1.    Need for the bill
           
            The author states:

               The purpose of this bill is to clarify that gender  
               identity, marital status, and sexual orientation are  
               protected classes under the Unruh Civil Rights Act  
               (Unruh Act) and related provisions?

               While the Unruh Act does not expressly mention gender  
               identity, marital status or sexual orientation as  
               grounds of discrimination in which business  
               establishments in California are forbidden to engage,  
               the California Supreme Court has rejected the argument  
               that the Unruh Act's ban on discrimination reaches  
               only the classifications specified in the Act's  
               text?[citations omitted]?  Because these particular  
               bases of discrimination are not explicitly listed in  
               the Unruh Act?, there is an assumption that they are  
               not protected classes covered by these laws.  This  
               assumption has led to unnecessary litigation leading  
               to erroneous decisions at the trial and appellate  
               court levels.  This proposal will remedy this problem  
               by making it clearer that these specified  
               characteristics are covered by the Unruh Act and  
               related provisions.  Moreover, by explicitly listing  
               these characteristics and providing definitions, [the  
                                                                       




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               Act] will be more consistent in form with more  
               recently enacted California non-discrimination laws,  
               e.g., the Fair Employment and Housing Act, which also  
               prohibits discrimination based on these  
               characteristics, but does so by enumerating them  
               explicitly rather than by relying on broad legislative  
               intent and case law.

            This bill would not break new ground in expanding the  
            scope of protection provided by the Unruh Civil Rights  
            Act.  Because it would clarify existing statutory and  
            case law as to what is covered, it could reduce  
            litigation and encourage better compliance with the law.

          2.    Author's amendment: no effect intended re: Marina  
          Point v. Wolfson  

            The author proposes to amend the bill to clarify that it  
            does not intend to affect the court's holding in  Marina  
            Point, Ltd.  v.  Wolfson,  supra.   Marina Point  held that  
            the Unruh Act protects all persons from arbitrary  
            discrimination by business establishments, not just on  
            the grounds enumerated in the statute, and that a  
            landlord's "no children" policy was arbitrary  
            discrimination based on familial status in violation of  
            the Act.  The amendment is being made to ensure that no  
            negative inference is made by the action made in the  
            Assembly to delete from the bill the original inclusion  
            of familial status as a characteristic protected under  
            the Unruh Act.  The deletion was made because it was  
            pointed out that the law is settled as to the issue of  
            familial status, and there was no reason to clarify it.   
            The author's amendment confirms that this bill never  
            intended and does not intend to affect the court's  
            holding in  Marina Point  . 

          3.    Sexual orientation has long been recognized as a  
          protected class under Unruh  

            Even though the Unruh Act does not list sexual  
            orientation as a basis of discrimination in which  
            business establishments in California are forbidden to  
            engage, the Supreme Court has repeatedly rejected the  
            argument that the Unruh Act's ban on discrimination  
            reaches only those classifications specified in the  
                                                                       




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            statute.  [Cf.  Harris  v.  Capital Growth Investors XIV   
            (1991) 52 Cal 3d 1142.]   The appellate courts have,  
            including the Supreme Court, instead made it clear that  
            the Act also prohibits arbitrary discrimination based on  
            non-enumerated "personal characteristics," including  
            sexual orientation. [  Stoumen  v.  Reilly  (1951) 37 Cal. 2d  
            713, 715-716;  Hubert  v.  Williams  (1982) 133 Cal.App.3d.  
            Supp. 1, 5;  Rolon  v.  Kulwitzky  (1984) 153 Cal. App. 3d  
            289.]

            However, the trial courts have been known to focus  
            exclusively on the listing of protected classes in the  
            statute, with results that are sometimes confused and  
            conflicting, such that the appellate courts have had to  
            reiterate the proper construction of the statute.  [Cf.  
             Marina Point  , supra;  O'Connor  v.  Village Green Owners  
            Association  (1983) 33 Cal.3d 790.]  

            By adding sexual orientation to the civil rights  
            statutes, it will be abundantly clear to the lower  
            courts, and all persons in the state, that discrimination  
            on the basis of sexual orientation is not permitted in  
            this state.

            Numerous states expressly prohibit discrimination on the  
            basis of gender identity, marital status and sexual  
            orientation.  Five states (Illinois, Maine, Minnesota,  
            New Mexico and Rhode Island) expressly prohibit  
            discrimination on the basis of gender identity in public  
            accommodations.  Seventeen states and the District of  
            Columbia expressly prohibit discrimination on the basis  
            of marital status in public accommodations. These are  
            Alaska, Colorado, Connecticut, Delaware, Hawaii,  
            Illinois, Maryland, Michigan, Minnesota, Montana,  
            Nebraska, New Hampshire, New Jersey, New York, Oregon,  
            Virginia, and Vermont.  Ten states and the District of  
            Columbia expressly prohibit discrimination on the basis  
            of sexual orientation in public accommodations.  These  
            states include Connecticut, Hawaii, Massachusetts,  
            Minnesota, New Hampshire, New Jersey, New York, Rhode  
            Island, Vermont, and Wisconsin.

          4.    Marital status is an appropriate addition to Unruh Act  
            because it is consistent with determinative rulings of  
            the Supreme Court  
                                                                       




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            Similarly, the Supreme Court has repeatedly recognized  
            that arbitrary discrimination prohibited by the Act  
            includes not only sexual orientation discrimination but  
            also discrimination on the basis of age, families with  
            children, and unconventional dress and physical  
            appearance.  [Cf.  In re Cox  , supra,  Marina Point  v.  
             Wolfson  , supra,  O'Connor  v.  Village Green Owners  
            Association  , supra.]

            In  Harris  v.  Capital Growth Investors XIV  , supra, the  
            court listed three factors to consider whether a  
            particular form of discrimination is prohibited under the  
            Unruh Act.  First, whether the characteristic at issue is  
            "similar to the statutory classifications" listed in the  
            Unruh Act in bearing "little or no relationship to  
            [people's] abilities to be responsible consumers of  
            public accommodations" [  Harris  at 1156, 1148, 1169] and  
            in being the kind of characteristic commonly prohibited  
            as a ground of discrimination under civil rights laws  
            [Id. at 1169, fn. 9].  Second, whether discrimination  
            based on the characteristic in question tends to be  
            supportable by "legitimate business interests " that are  
            "appropriate to an enterprise servicing the public." [Id.  
            at 1162-1163, 1165.] Third, what consequences would  
            result if discrimination were banned based on that  
            characteristic [Id. at 1165-1169.]

            Proponents of AB 1400 contend that marital status as a  
            characteristic that the Unruh Act would protect against  
            discrimination meets all of the criteria listed in  
             Harris  .  Marital status has nothing to do with the  
            ability to be a responsible consumer.  In fact, many  
            statutes and regulations that prohibit discrimination in  
            California, other states, and even the federal arena in a  
            variety of contexts  (such as insurance, student loans,  
            credit issuance, housing, financing, employment) ban  
            discrimination on the basis of marital status.  Since  
            marital status has been held not to be a legitimate  
            justification for a landlord to refuse to rent an  
            apartment to a couple who were not married to each other  
            [  Smith  v.  FEHC  (1996) 12 Cal.4th 1143), there is no  
            legitimate business interest that would justify refusal  
            by a business establishment to provide otherwise  
            available benefits to a couple because they are not  
                                                                       




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            married to one another.  And, there does not appear to be  
            any adverse consequences that would flow from codifying  
            marital status as a protected characteristic under the  
            Unruh Act.

            The author acknowledges that the issue of marital status  
            as a protected characteristic is currently pending before  
            the Supreme Court in  Koebke  v.  Bernardo Heights Country  
            Club  , rev. granted, (2004) 14 Cal. Rptr. 3d 211.  While  
            Koebke  involves marital status as a protected class, it  
            also involves the recognition of a domestic partner as a  
            family member in the context of the extension of a  
            country club membership to family members.  The author  
            rejects the appellate court's holding that marital status  
            was not protected by the Unruh Act in that case (the  
            opinion has since been vacated and depublished) and now  
            intends, by the addition of marital status to the Unruh  
            Act, to clarify that indeed it is protected, and has been  
            protected by the courts for many years.

          5.    Legislative findings and declarations comport with  
            case law and legislative history of Unruh

             This bill contains several legislative findings and  
            declarations that reiterate the history of civil rights  
            protections in the state even before passage of the Unruh  
            Civil Rights Act, and that the Act was passed in order to  
            broaden the scope and breadth of its protections.  The  
            declarations also incorporate long-standing language,  
            first used in  In re Cox,  supra at 216, that the  
            identification of particular bases of discrimination in  
            the Unruh Civil Rights Act, enacted in 1959, is  
            illustrative rather than restrictive. 

          6.    Opposition arguments  

            California Catholic Conference, in opposition to the  
            bill, writes that "[B]ecause the Unruh Act does not  
            define "business establishment" and because this bill  
            proposes the use of the words "of every kind whatsoever"  
            without exception and without specifying kinds of  
            enterprises, the term "business" might be construed to  
            include churches, church organizations and associations.   
            This could lead to unwarranted challenges in the areas of  
            church membership, religious school admissions, and  
                                                                       




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            hiring practices, selection and dismissal of clergy,  
            etc?.AB 1400 fails to recognize and accommodate sincerely  
            held religious beliefs.  This lack of clarity will  
            potentially lead to frivolous and unnecessary lawsuits."


          Support: Aids Project, Los Angeles; American Civil  
                 Liberties Union; Anti-Defamation League; American  
                 Federation of State, County and Municipal Employees  
                 (AFSCME), AFL-CIO; Asian Americans for Civil Rights  
                 and Equality; Asian American Advocacy; Attorney  
                 General of California; Bienestar Human Services,  
                 Inc.; California Faculty Association; California  
                 Labor Federation; California National Organization  
                 for Women; Equality California; First Congregational  
                 Church of Long Beach; Gay and Lesbian Adolescent  
                 Social Services, Inc.; Gay-Straight Alliance  
                 Network; Human Rights/Fair Housing Commission of the  
                 City and County of Sacramento; Lamda Legal; Lambda  
                 Letters Project; Lesbian & Gay Lawyers Association,  
                 Los Angeles;  Log Cabin Republicans; Metropolitan  
                 Community Church, Los Angeles; National Association  
                 of Social Workers; Service Employees International  
                 Union (SEIU); Parents, Families and Friends of  
                 Lesbians and Gays(PFLAG); Planned Parenthood,  
                 Affiliates of California, Inc.; Southern California  
                 Nevada Conference United Church of Christ; State  
                 Commission on the Status of Women; Stonewall Young  
                 Democrats Transgender Law Center; 

          Opposition: California Catholic Conference; California  
                   Family Alliance; Capitol Resource Institute;  
                   Concerned Women for America (CWA) of California,  
                   San Diego &Imperial Counties; Eagle Forum of  
                   California; San Luis Paper Co.; Traditional Values  
                   Coalition; two individuals
                                         
                                    HISTORY
           
          Source: Equality California

          Related Pending Legislation: SB 1030 (Hollingsworth) would  
                                amend  51 to require that the  
                                statute not be construed to provide  
                                                                                                      nonessential services to a member of  
                                                                       




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                                the public, if to do so would violate  
                                one's conscience due to a sincerely  
                                held belief.  This bill is being held  
                                in this committee.


          Prior Legislation: AB 1707 (2004, Cmte on Jud) would have  
                         made technical changes to Civ. Code  51.  
                         Vetoed.

                         AB 1592 (2001, Wyman)  would have construed  
                         the Unruh Act not to apply to membership in  
                         the Boy Scouts.  Failed passage in Asm. Jud.
                         
                         AB 1701 (2001, Cmte on Jud.) would have  
                         renamed the act as the Jesse Unruh Civil  
                         Rights Act, but was later amended to amend  
                         another statute.  Held in this committee.

                         AB 2298 (2002, Bogh) would have affected  
                         Unruh Act as it applies to sale or rental of  
                         housing.  Held in Asm. Jud. 

                         AB 407 (1999, Cedillo) would have added  
                         immigration status as a protected class  
                         under Unruh.  Vetoed.

                         AB 1670 (1999, Cmte on Jud.) added  51.5 to  
                         the Unruh Civil Rights Act, which protects  
                         those perceived to have a protected  
                         characteristic and those associated with  
                         persons perceived to have a protected  
                         characteristic from discrimination. Ch. 591,  
                         Stats. 1999.

                         AB 2222 (2000, Kuehl) added definitions for  
                         disability and medical condition under the  
                         Unruh Act. Ch. 1049, Stats. 2000. 

                         AB 2702 (1998, Aroner) dealt with  
                         discrimination based on disability, stating  
                         that the law is not to be construed to  
                         impose additional requirements beyond those  
                         required by other laws for compliance. Ch.  
                         195, Stats. 1998.
                                                                       




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                         SB 1910 (Haynes, 1998) dealt with Unruh Act  
                         and the Boy Scouts.  Failed passage in this  
                         Committee.

                         
          Prior Vote:  Asm. Jud. (Ayes 5, Noes 3)
                    Asm. Flr. (Ayes 44, Noes 29)

          
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