BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2654| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2654 Author: Laird (D) Amended: 5/15/08 in Assembly Vote: 21 SENATE JUDICIARY COMMITTEE : 3-1, 6/24/08 AYES: Corbett, Kuehl, Steinberg NOES: Harman NO VOTE RECORDED: Ackerman SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 48-30, 5/27/08 - See last page for vote SUBJECT : Discrimination SOURCE : Equality California DIGEST : This bill updates various provisions in different codes dealing with discrimination in contracting, insurance, workers compensation, court-appointed child advocacy, and prepaid health plans to ensure that proper reference is made to the classes protected under the Unruh Civil Rights Act (Section 51 of the Civil Code), or to Section 11135 of the Government Code which prohibits discrimination in state-funded programs and activities based on race, color, religion, ancestry, national origin, disability, medical condition, sex (including gender identity), marital status, and sexual orientation), or to the Fair Employment and Housing Act (Section 12926.1 of the CONTINUED AB 2654 Page 2 Government Code). Thus, this bill harmonizes and makes consistent these anti-discrimination statutes spread across various state codes. In doing so, this bill expands the protected classes in some statutes to encompass those recently added to the Unruh Civil Rights Act or to Sections 11135 and 12926.1 of the Government Code. ANALYSIS : Existing law prohibits discrimination in state-funded programs and activities based on race, color, religion, ancestry, national origin, disability, medical condition, and sex (including gender identity). (Section 11135 of the Government Code) Existing law authorizes cities, counties and cities and counties to establish commissions to foster peaceful relations in the interest of preserving the public peace among citizens of different races, religions, and national origins. (Section 50260 of the Government Code) This bill changes "citizens" to "residents" and adds a reference to other characteristics defined in Section 11135 of the Government Code, which prohibits discrimination in state-funded programs and activities based on race, color, religion, ancestry, national origin, disability, medical condition, and sex (including gender identity). Existing law authorizes local agencies to construct employee rental housing funded by bonds, notes, and other public funding sources and requires that contractors and subcontractors engaged in this construction provide equal opportunity for employment without discrimination based on race, sex, marital status, color, religion, national origin, or ancestry. (Section 54701.12 of the Government Code) This bill deletes references to each protected characteristic and instead cross-references Section 12926.1 of the Government Code, which defines protected characteristics under the Fair Employment and Housing Act. Existing law prohibits discrimination in the application for and issuance of insurance policies, licensing of insurance businesses, determinations of insurability, application for and issuance of performance bonds, and AB 2654 Page 3 workers' compensation insurance contracts, based on race, color, gender, religion, national origin, or geographical area. (Sections 679.71, 679.72, 699.5, 10141, 11628, and 12095 of the Insurance Code and Section 4600.6 of the Labor Code) This bill deletes the references to each protected characteristic (other than geographic area for Insurance Code provisions) and replaces them with a cross-reference to any characteristic listed or defined in specific subdivisions of Section 51 of the Civil Code (the Unruh Civil Rights Act). Existing law establishes a statewide program of court appointed special advocates (CASA), to assist the courts in juvenile dependency proceedings and other cases involving children, such as child abuse. Existing law establishes the qualifications and responsibilities of a CASA, and specifies that an adult otherwise qualified to act as a CASA shall not be discriminated against on the basis of sex, socioeconomic, religious, racial, ethnic, or age factors. (Section 103 of the Welfare and Institutions Code) This bill replaces those factors, on which basis a qualified adult may not be discriminated against, with marital status, socioeconomic factors, or any characteristic listed or defined in Section 11135 of the Government Code. Existing law prohibits discrimination on the basis of race, sex, age, religion, creed, color, national origin, or ancestry in the enrollment of subscribers to a prepaid health plan. (Section 14200.1 of the Welfare and Institutions Code) This bill, instead, prohibits discrimination on the basis of marital status or any characteristic listed or defined in Section 11135 of the Government Code. Background Last year, AB 14 (Laird) cleaned up many provisions in various codes to ensure that references to classes AB 2654 Page 4 protected under the Unruh Civil Rights Act, the Fair Employment and Housing Act, and other Government Code provisions governing agencies and businesses that receive public funds are embedded in anti-discriminatory statutes. AB 2654 addresses some if not all of the statutes that were left out of AB 14. The author's office states that while these code sections prohibit discrimination against various protected classes with respect to specific business-related statutes and government activities, it is important that they conform to the general statutes protecting all classes, such as the Unruh Civil Rights Act, the Fair Employment and Housing Act, and Section 11135 of the Government Code. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 7/14/08) Equality California (source) AIDS Project Los Angeles Asian Americans for Civil Rights and Equality California Commission on the Status of Women California NAACP Capitol Family Association Mexican American Legal Defense and Educational Fund OPPOSITION : (Verified 7/14/08) Capitol Resource Family Impact ARGUMENTS IN SUPPORT : According to the author's office: "This bill addresses three separate bodies of law that deal with discriminatory practices on the basis of a person's characteristics. The first deals with discrimination in the market place, where business is conducted with people at all levels. These situations are addressed by the Unruh Civil Rights Act (Unruh Act), which prohibits discrimination on the basis of characteristics that, over time, have come to reflect positive changes in societal attitudes towards differences among people and their cultures. Thus, the Unruh Act has evolved over the years to include AB 2654 Page 5 disability, medical condition, and, in 2005, sexual orientation, gender identity, and marital status as protected characteristics. It was also amended in 1992 to deem a violation of the Americans with Disabilities Act as a violation of the Unruh Act. "The second deals with discrimination in programs and activities where the state (thus the taxpayer) provides funding, support, or participation in other ways besides financial support. These different state-supported activities or programs are subject to their own anti-discrimination provisions which have not been updated in the same manner that the Unruh Act and Government Code Sec. 11135 have been modernized. For example, Sec. 11135 was amended in 2001 to clarify that the state is subject to the same non-discrimination requirements that apply to programs it funds. In 2002, it was again amended to add race and national origin to the list of protected characteristics on which discrimination may not be based in the conduct of state-funded or state-operated activities. Later in 2003 and 2005 Gov. Code Sec. 11135 was amended to clarify that non-discrimination and accessibility obligations on the part of state entities and activities apply to the California State University (SB 302 (Kuehl), Ch. 784, Stats. 2003 and AB 1742 (Asm. Cmte. on Judiciary), Ch. 706, Stats. 2005). Finally, in 2006, sexual orientation was added to the list of characteristics identified in Gov. Code Sec. 11135 (SB 1441 (Kuehl), Ch. 182, Stats. 2006). "The third is the Fair Employment and Housing Act, which governs activities in public and private employment and housing. FEHA [Fair Employment and Housing Act] identifies the bases on which a person may not be discriminated against in employment or housing (Gov. C. Secs. 12926, 12926.1). It has been amended from time to time to be consistent with case law as well as with amendments to the Unruh Civil Rights Act and other anti-discrimination statutes. "By using these three provisions as a point of reference for various statutes that prohibit discrimination on the basis of a person's characteristics, AB 2654 hopes to AB 2654 Page 6 provide further consistency in state law, and a minimum of protections for all people in the state in the identified situations. These statutes include the provisions relating to enrollment in prepaid health plan insurance and qualification to be a CASA program employee, that contain even more protected characteristics, such as economic status, or ability to pay for medical services, that could be a factor in determining whether a business or a state-funded program discriminates against a person seeking services or accommodations or employment." ARGUMENTS IN OPPOSITION : Opponents of this bill contend that the main purpose of these revisions to the anti-discrimination laws is to expressly add sexual orientation to the list of characteristics of protected classes. However, the express inclusion of sexual orientation is no more than a technical clarification because the blanket provisions of the Unruh Civil Rights Act and Section 11135 of the Government Code already prohibit discrimination on the basis of sexual orientation, and those statutes already regulate behavior or activity that the specific statutes in this bill regulates. Opponents also complain that the bill eliminates protections against discrimination on the basis of religion. This probably originates from the removal, in two sections, of the word "creed" from the list of protected classes, however, the bill inserts the word "religion" in the place of "creed," thus making no substantive change at all. The Capitol Resource Family Impact (CRFI) writes in opposition: "This bill seeks to establish special 'rights' based solely on sexual activity. The bill also removes 'creed' as a prohibited discriminatory practice amongst insurance agencies. Insurance companies would be allowed to discriminate against those with religious beliefs, a fundamentally unconstitutional provision. CRFI opposes establishing special "rights" based on sexual behavior. AB 2654 is a government intrusion in private businesses that espouse traditional beliefs. Especially in the case of health insurance companies, risky sexual activity should be considered when enrolling new customers. Placing special AB 2654 Page 7 protections for homosexual behavior in the law is an attack on those with traditional values. The removal of religious protections from insurance discrimination is a direct assault on the moral beliefs of millions of Americans. Under the guise of ending discrimination, this bill will in fact result in reverse discrimination against religious citizens." ASSEMBLY FLOOR : AYES: Arambula, Beall, Berg, Brownley, Caballero, Charles Calderon, Carter, Coto, Davis, De La Torre, De Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes, Furutani, Galgiani, Hancock, Hayashi, Hernandez, Huffman, Jones, Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu, Ma, Mendoza, Mullin, Nava, Nunez, Parra, Portantino, Price, Ruskin, Salas, Saldana, Silva, Solorio, Swanson, Torrico, Wolk, Bass NOES: Adams, Aghazarian, Anderson, Benoit, Berryhill, Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller, Gaines, Garcia, Garrick, Horton, Huff, Jeffries, Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Sharon Runner, Smyth, Spitzer, Strickland, Tran, Villines, Walters NO VOTE RECORDED: Houston, Soto RJG:mw 7/14/08 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****