BILL ANALYSIS AB 1001 Page 1 Date of Hearing: April 14, 1999 ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT Alan Lowenthal, Chair AB 1001 (Villaraigrosa) - As Introduced: February 25, 1999 SUBJECT : Housing and employment discrimination based on a person's sexual orientation. SUMMARY : Amends the Fair Employment and Housing Act (FEHA) to prohibit discrimination on the basis of sexual orientation and deletes a similar provision in the Labor Code. Codifies current case law regarding housing discrimination. Specifically, this bill : 1)Defines "sexual orientation" as "heterosexuality, homosexuality, and bisexuality." 2)Defines sexual orientation as an unlawful basis for discrimination in employment and housing and amends FEHA to include sexual orientation. 3)Declares that the opportunity to seek and obtain employment free from discrimination is a civil right. 4)Prohibits the owner of any housing accommodation from making any inquiry, oral or written, regarding an applicant's sexual orientation and from discriminating against the applicant. 5)Prohibits any person or entity that provides financial assistance for the purchase or construction of housing from discriminating against any person or group of persons because of sexual orientation. 6)Deletes the prohibition on employment discrimination based on sexual orientation from the Labor Code. EXISTING LAW 1)Recognizes in case law that it is the duty of the Department of Fair Employment and Housing (FEH) to investigate and adjudicate complaints regarding housing discrimination based on sexual orientation (Hubert Williams (1982) 133 Cal. App.3 Supp.1). AB 1001 Page 2 2)Provides FEH a variety of enforcement tools to investigate and adjudicate housing discrimination based on sexual orientation. FEH can order the landlord to cease and desist, to sell or rent the accommodation to the complainant, access actual damages, and access punitive damages of $10,000 for a first offense, $25,000 for a second, and $50,000 for three or more. In addition, the complainant can choose to file a civil action in lieu of or during FEH administrative process. Unlike employment cases, there is no requirement that a complainant exhaust the administrative remedies before filing a civil action. 3) Establishes that it is the duty of FEH to investigate and adjudicate complaints regarding employment, including hiring, promotion, and termination, on the basis of race religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age. 4)Provides FEH a variety of tools to investigate and adjudicate complaints regarding employment discrimination with the exception of sexual orientation. Complaints must be filed within one-year of the alleged incident. Remedies available for include cease and desist orders, reinstatement, actual damages up to $50,000, affirmative or prospective relief, and an administrative fine. If a complainant is not satisfied with the administrative decision, or if FEH issues the complainant a right-to-sue letter, the complainant can bring a civil action in court. The complainant cannot file a civil action without first exhausting FEHA administrative remedies. 5)Prohibits under Labor Code Section 1102.1 employment discrimination in any aspect of employment or opportunity for employment based on actual or perceived sexual orientation. Employers with five or fewer employees and all non-profit organizations are exempt. The Department of Industrial Relations (DIR), investigates complaints arising under this section, or complaints can be filed as a civil action in court. Claims must be filed within thirty days of the alleged incident. Remedies available include cease and desist orders, reinstatement, back pay, and attorneys' fees. FISCAL EFFECT : Unknown AB 1001 Page 3 COMMENTS : The purpose of this bill is to afford individuals who suffer from housing and employment discrimination due to sexual orientation the same protections as those who suffer discrimination due to race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age. Related Legislation : This bill is similar to AB 257 (Villaraigosa) of 1997, which was vetoed by Governor Wilson. Supporters of this bill argue that that in the case of housing discrimination, state law should reflect case law. They argue that if the gay and lesbian community is covered by current case law, then they deserve to have state law reflect this. They also believe enforcement of discrimination should be located within a single office, making it easier for victims to identify the appropriate office to contact and seek redress. Current practice can be confusing because victims do not know whom to contact and may receive conflicting information by an office not specializing in that specific type of discrimination. Supporters of this bill argue that the differences between the Labor code and FEHA result in unequal protection against employment discrimination for gay, lesbian, and bisexual individuals. The differences they cite include: a) The Labor Code allows only 30 days to file a complaint. The FEHA allows up to one year. Supporters argue that 30 days is not enough time in to identify and act on discrimination, especially since the complainant may not immediately realize that discrimination has occurred. b) Extensive case law has established guidelines for FEHA, whereas little exists interpreting Labor Code Section 1102.1. c) FEH investigators are extensively trained in discrimination cases. DIR investigators, on the other hand, primarily handle whistleblowing cases, wage disputes, and health and safety complaints. AB 1001 Page 4 Opponents of this bill argue that churches will be forced to hire homosexual employees if this bill passes, although nonprofit religious organizations are specifically exempt from the FEHA.Opponents also argue that this bill might be costly to businesses. They believe small businesses, who might be involved in increased litigation, would suffer a large financial burden defending themselves. This bill has been double referred to the Committee on Labor and Employment. REGISTERED SUPPORT / OPPOSITION : Support American Civil Liberties Union Asian Pacific Gays and Friends California Alliance for Pride and Equality California Nurses Association California Rural Legal Assistance Foundation California Teachers Association Consumer Attorneys of California Gay and Lesbian Association of Retiring Persons National Organization For Women Reform Party Santa Barbara Stonewall Democratic Club South Orange County Chapter of the Parents, Families and Friends of Lesbian and Gays Organization. Western Center on Law and Poverty Wildcat International 17 Individuals Opposition Committee on Moral Concerns Traditional Values Coalition 21 Individuals Analysis Prepared by: Patrick O'Donnell / H. & C.D. / (916)319-2085