BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 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





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          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  







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          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  







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          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  







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            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  







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            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  







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          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

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