BILL ANALYSIS SB 1288 Date of Hearing: August 10, 1994 ASSEMBLY COMMITTEE ON JUDICIARY Phillip Isenberg, Chair SB 1288 (Calderon) - As Amended: August 8, 1994 (Analysis based on amendments to be offered in committee) PRIOR ACTION Sen. Com. on B.&P. 6-3 Sen. Com. on JUD. 6-1 Sen. Floor 21-11 Assmb. Com. on C.P., G.E. & E.D. 7-4 KEY ISSUES: 1) Should the minimum exemplary damages for violation of the Unruh Civil Rights Act be increased from $250 to $1,000 per violation? 2) Should the Department of Consumer Affairs (DCA) send notice to licensed barbers and cosmetologists that gender-based pricing is a violation of state antidiscrimination law? 3) Should DCA's Division of Consumer Services be required to develop and distribute consumer information on the problem of gender-based pricing discrimination? Facts. 1) According to the Department of Consumer Affairs, there are 24,546 barbers and 273,520 cosmetologists licensed in California. 2) According to a 1994 Assembly Office of Research (AOR) report, "A Survey of Haircuts and Laundry Services in California," women in California pay, on the average, $5 more for a haircut and $1.71 more to have a shirt laundered than men. The AOR survey also found that 64% of those establishments surveyed in five major cities charged more to launder a woman's white cotton shirt than a man's. DIGEST In regard to penalty for violation of civil rights laws. Existing law, the Unruh Civil Rights Act (Unruh Act), provides that all špersons within the jurisdiction of the state are entitled to full and equal šaccommodations, advantages, facilities, privileges and services in all šbusiness establishments without regard to their sex, race, color, religion, šancestry, national origin or disability. - continued - SB 1288 Page 1 SB 1288 Existing law: Provides that remedies for violation šof the Unruh Civil Rights Act (Unruh) šshall include actual damage and an šamount determined by a jury up to a šmaximum of three times actual šdamages, but no less than $250 (i.e., šminimum damage per violation). This bill: Increases the minimum damage for šUnruh violations to $1,000. In regard to the Department of Consumer Affairs. Existing law: 1) Provides for the regulation of various occupations and vocations through licensing boards within the Department of Consumer Affairs and specifically provides for the licensing of barbers and cosmetology practitioners by the Board of Barbering and Cosmetology. 2) Provides that every person who holds a license under the provisions of the Business and Professions Code is subject to disciplinary action if the licensee refuses service to a person based on race, color, religion, sex, ancestry, disability, marital status or national origin. This bill, in an uncodified section: 1) Requires that by June 1, 1995, the Department of Consumer Affairs (DCA) provide notice to all licensed barbers and cosmetologists that gender-based pricing is prohibited by the Unruh Civil Rights Act and that such violations may require payment of $1,000 for each violation. 2) Requires that by June 1, 1996, DCA prepare and submit to the Legislature, upon request, (a) a summary of the number and subject of any inquiries or comments by a licensee in response to the required gender-based notice and (b) any gender-based pricing complaints received by the DCA board and by the Department of Fair Employment and Housing. 3) Requires that by June 1, 1996, DCA's Division of Consumer Services develop and distribute consumer information on the problem of gender- based pricing discrimination. FISCAL EFFECT This bill will result in additional, unknown, costs to the Department of š - continued - SB 1288 Page 2 SB 1288 Consumer Affairs. This bill will be referred to the Assembly Committee šon Ways and Means. COMMENTS 1) Author's Statement. According to the author, although "gender- based pricing discrimination has been prohibited for 20 years, the pervasiveness of the problem suggests that many businesses and consumers are unaware of the illegality of gender-based, 'traditional' pricing practices." This bill, the author states, will ensure greater awareness of the problem by requiring all licensed barbers and cosmetologists to be given specific notice that pricing "must be based on an individual's styling needs -- not on gender" and that each Unruh Act violation may result in a minimum fine of $1,000. 2) Limited scope of the notice requirement. This bill requires the Department of Consumer Affairs (DCA) to provide a specific notice to licensed barbers and cosmetologists that gender-based pricing is prohibited by the Unruh Act and other state antidiscrimination laws. The author recognizes that gender-based pricing problem is not limited to only barbers and cosmetologists, but states that this bill is a starting point. The author's office suggests that the required notice can be done at little cost to DCA. If the notice proves to reduce gender-based pricing discrimination in regard to these licensees, the requirement may be expanded to other state licensees in subsequent legislation. The Department of Fair Employment and Housing (DFEH) is the state agency primarily responsible for receiving complaints regarding unlawful discrimination. Although the author recognizes the role of DFEH, he contends that DCA, the licensing agency for California barbers and cosmetologists, is the most appropriate agency to send the required gender-based pricing notice. 3) Related legislation. AB 2418 (Speier) enacts the Equal Pricing Act of 1994, which prohibits the practice of pricing discrimination based on gender. Among other things, AB 2418: a) Provides that no seller of goods or services, including a person who holds a license under the provisions of this code, may discriminate, with respect to the price charged for goods or services, because of the person's gender. b) Provides that remedies (i.e., actual damages, punitive damages, attorney's fees and injunctive relief) for violations of the Equal Pricing Act may be sought through the filing of a civil action by the Attorney General (AG), a district attorney, city attorney or any aggrieved person against anyone who denies, aids or incites a denial of rights. c) Specifically excludes from its provisions the pricing of health care service plans or insurance products and services. AB 2418 is currently in Senate Appropriations Committee. - continued - SB 1288 Page 3 SB 1288 4) Additional amendment. Committee staff has been advised that the author will offer the following amendments: On page 4, line 7, strike "create a pilot project" On page 4, line 9, strike "contains" and insert: other state laws contain In addition, committee staff is advised that the author is considering amendments requested by DCA to: - Provide that the gender-based notice clarify that violations may result in a minimum of $1,000 for violation of the state's antidiscrimination laws. - Delay the DCA reports to the Legislature to June 1, 1998, rather than June 1, 1996. - More clearly define the "medical boards" referred to in the bill. - Provide that the required gender-based pricing discrimination information be "made available" rather than be "distributed" by DCA's Division of Consumer Services. SUPPORT OPPOSITION Unknown Unknown - continued - SB 1288 Page 4