BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1252
                                                                  Page  1

          Date of Hearing:   June 29, 2010

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                    SB 1252 (Corbett) - As Amended:  May 19, 2010

           SENATE VOTE :  22-8
           
          SUBJECT  :  HOUSING DISCRIMINATION: TECHNICAL AND CONFORMING  
          REVISIONS

           KEY ISSUE  :  SHOULD CERTAIN HOUSING DISCRIMINATION PROVISIONS OF  
          THE FAIR EMPLOYMENT AND HOUSING ACT BE CLARIFIED AND CONFORMED  
          TO FEDERAL LAW?
           
          FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.
           
                                       SYNOPSIS
          
          This bill is sponsored by the Department of Fair Employment and  
          Housing (DFEH) to make several technical revisions to the Fair  
          Employment and Housing Act (FEHA) pertaining to housing  
          discrimination.  Specifically, this bill would make technical  
          revisions to consistently include "source of income" as a  
          characteristic protected from housing discrimination; clarify  
          that admission preferences based on age, imposed in connection  
          with a federally-approved housing program, do not constitute age  
          discrimination in housing; and amend FEHA's civil penalty caps  
          to conform to those under federal law.  There is no substantive  
          opposition, although two landlord groups seek an amendment that  
          would codify an uncodified statement of legislative intent.
           
          SUMMARY  :  Makes miscellaneous technical and conforming changes  
          to housing discrimination law.  Specifically,  this bill  :

          1)Clarifies that admission preferences based on age, imposed in  
            connection with a federally-approved housing program, do not  
            constitute age discrimination in housing.

          2)Makes technical revisions to cross reference "source of  
            income" where it already is among the list of classes  
            protected for the purpose of clarity and consistency.

          3)Increases the maximum civil penalties that may be assessed for  
            a violation of the FEHA to $16,000, $37,500, and $65,000 for a  








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            person's first, second, and third violations, respectively.  

           EXISTING LAW : 

          1)Pursuant to the Fair Employment and Housing Act, declares it  
            to be against public policy to discriminate on the grounds of  
            race, color, religion, sex, sexual orientation, marital  
            status, national origin, ancestry, familial status, or  
            disability; and that every person has a civil right to be  
            given the opportunity to seek, obtain, or hold employment and  
            housing without facing discrimination based on these protected  
            classes.  (Gov. Code Secs. 12920, 12921.)

          2)Declares it unlawful for any housing accommodation owner to  
            inquire about; make known any preference or limitation as to;  
            discriminate; or harass a person based on the person's race,  
            color, religion, sex, sexual orientation, marital status,  
            national origin, ancestry, familial status, source of income,  
            or disability.  (Gov. Code Sec. 12955.)

          3)Provides under the FEHA that an owner may be subject to a  
            civil penalty of up to $10,000 for his or her first violation  
            of the FEHA.  If it is the offender's second violation within  
            five years, a civil penalty may be assessed of up to $25,000.   
            If it is the offender's third violation within seven years, a  
            civil penalty may be assessed of up to $50,000.  (Gov. Code  
            Sec. 12987.)

          4)Provides under federal law that an administrative law judge  
            may impose a civil penalty of up to $16,000 for a violation of  
            a Fair Housing Act.  If it is the offender's second violation  
            within five years, a civil penalty may be assessed of up  
            $37,500.  If the offender has violated the Fair Housing Act  
            three or more times within seven years, a civil penalty may be  
            assessed of up to $65,000.  (24 C.F.R. 180.671.)

           COMMENTS  :  This bill is sponsored by the Department of Fair  
          Employment and Housing (DFEH), the state agency responsible for  
          enforcing the FEHA and other civil rights laws.  The FEHA  
          prohibits employment and housing discrimination based on the  
          protected classes of race, color, religion, sex, sexual  
          orientation, marital status, national origin, ancestry, familial  
          status, source of income, or disability.  The FEHA further  
          provides that it is a civil right to be able to pursue and  
          maintain housing or employment without facing discrimination.  








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          According to a work-sharing agreement between the DFEH and the  
          U.S. Department of Housing and Urban Development (HUD), the FEHA  
          must remain substantially similar to the Fair Housing Amendments  
          Act (FHAA) in order for the DFEH to receive complaint referrals  
          and funding from HUD.  According to the DFEH, for the current  
          contract period the DFEH anticipates receiving over $3 million  
          dollars from HUD, which it believes could be at risk if this  
          bill is not enacted.  

           Consistent References To "Source Of Income" Among The List Of  
          Protected Classes.   The FEHA declares that it is unlawful to  
          discriminate on the basis of race, sex, sexual orientation,  
          marital status, national origin, ancestry, familial status,  
          source of income, and disability.  

          In 1999, housing discrimination on the basis of a person's  
          "source of income" was added to the statute.  However, the list  
          of protected characteristics in related FEHA housing provisions  
          was not similarly amended.  SB 1252 would address that  
          inconsistency by adding "source of income" to the list of  
          protected classes in Government Code Sections 12920, 12921 and  
          12955.8.  This change is technical and non-substantive in  
          nature, and the author has added intent language to underscore  
          that point.  Nevertheless, two groups have filed opposition  
          seeking to have that intent language codified, as discussed  
          below. 

           Civil Penalties Cap For Violations Of Housing Discrimination  
          Conformed To Federal Law To Preserve Consistency And Eligibility  
          For Federal Funds.   State law provides that if a person is found  
          to have engaged in unlawful discriminatory practices, a civil  
          penalty may be assessed.  Currently, the FEHA states that a  
          civil penalty of up to $10,000 may be assessed against a  
          violator for a first time offense.  If it is the second  
          violation in five years, a maximum civil penalty may be imposed  
          of $25,000.  If it is the third violation in seven years, a  
          maximum civil penalty of $50,000 may be imposed.  Similar caps  
          under federal law have recently increased to $16,000, $37,500,  
          and $65,000, for a person's first, second, and third violations,  
          respectively.  (24 C.F.R. Sec. 180.671.)  This bill would keep  
          the FEHA substantially equal to the FHAA by conforming the FEHA  
          caps to federal law.  

           Reconciling Differences Between Federal Law And State Law  








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          Regarding Housing Selection Preferences With Respect To Age.    
          The FEHA prohibits housing discrimination based on age, with the  
          exception of housing accommodations specifically designed for  
          senior citizens.   However, FHAA does not expressly prohibit age  
          discrimination in housing.  Instead, the FHAA prohibits the  
          refusal to sell or rent "?a dwelling to any person because of  
          race, color, religion, sex, familial status, or national  
          origin."  (42 U.S.C. Sec. 3604.)  This discrepancy becomes  
          problematic because some federal housing programs have renter  
          eligibility criteria requiring that at least one member of the  
          household be 62 years old or older.  Other members of the  
          household may be any age, and the provider may not refuse to  
          rent to a family with minor children, as long as one household  
          member is at least 62.  This type of requirement violates  
          California law, which only provides an exemption for senior  
          housing accommodations to make housing selections based on a  
          minimum age requirement.  Therefore, a failure to comply with  
          the federal regulation will result in a loss of funding for  
          housing providers, but compliance with the federal regulation  
          will result in violation of state law and a potential DFEH  
          complaint.   

          SB 1252 would clarify that admission preferences based on age,  
          imposed in connection with a federally-approved housing program,  
          do not constitute age discrimination in housing.  This  
          clarification would allow for both FHAA and FEHA to operate  
          without conflict.  

           ARGUMENTS IN OPPOSITION  :  Two landlord groups seek a cosmetic  
          change in the bill that they believe would further clarify the  
          purpose of the bill.  They would like the author to codify the  
          currently uncodified statement of intent in the bill regarding  
          the addition of the "source of income" to the non-substantive  
          sections from which it was inadvertently omitted.  This proposed  
          amendment would itself be non-substantive. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
            Opposition 
           
          Apartment Association California Southern Cities








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          Orange County Apartment Association


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334