BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 117|
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THIRD READING
Bill No: SB 117
Author: Kehoe (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-5, 3/22/11
AYES: Wright, Calderon, Corbett, De León, Evans, Padilla,
Yee
NOES: Anderson, Berryhill, Cannella, Strickland, Wyland
NO VOTE RECORDED: Hernandez
SENATE JUDICIARY COMMITTEE : 3-2, 4/5/11
AYES: Evans, Corbett, Leno
NOES: Harman, Blakeslee
SUBJECT : Public contracts: prohibitions:
discrimination based on
gender or sexual orientation
SOURCE : Equality California
DIGEST : This bill prohibits a state agency from entering
into a contract in the amount of $100,000 or more with a
contractor who discriminates based on the gender or sexual
orientation of the spouses or domestic partners of
employees.
ANALYSIS : Under current law, a state agency may not
enter into a contract for the acquisition of goods or
services in the amount of $100,000 or more with a business
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entity which, in providing benefits to its employees, (1)
discriminates between employees with spouses and employees
with domestic partners, or (2) discriminates between the
domestic partners and spouses of those employees. In
addition, existing law:
1. Permits a state agency, provided it has taken all
reasonable measures to find a compliant contractor, to
waive the requirement that a contractor provide the same
benefits to a registered domestic partner employee as it
does to a married employee, under specified
circumstances.
2. Provides that the contractor is not deemed to
discriminate if the contractor, in providing the
benefits, pays the actual costs incurred in obtaining
the benefit.
3. Specifies that, in the event a contractor is unable to
provide a certain benefit, despite taking reasonable
measures to do so, the contractor may not be deemed to
have discriminated in the provision of benefits if it
provides the employee with a cash payment equal to the
amount that the contractor or vendor pays to provide
that benefit to the spouse of an employee.
4. Provides, to the extent allowed by law, for
confidentiality of information disclosed or provided by
an employee or applicant for employment to verify
his/her domestic partnership registration or marriage
for purposes of qualifying for benefits.
5. Requires each state contract to contain a certification
by the contractor that it is in compliance with the
requirements of the law.
6. Specifies that, if a contractor falsely certifies that
it is in compliance with the law, the contractor is
subject to specific penalties unless within a time
period specified by the contracting agency, the
contractor provides proof that it has complied, or is in
the process of complying with the law.
Comments
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The bill's sponsor, Equality California, states that this
bill will protect the 18,000 same-sex couples who were
married in California during 2008 by expanding the law to
include gender and sexual orientation of spouses. Equality
California states:
"The playing field for contractors needs to be leveled by
ensuring that entities that discriminate are not given a
competitive advantage over those who treat their
employees equally. Providing the same benefits to an
employee with a domestic partner, or same-sex or
opposite-sex spouse ensures that workers receive equal
pay for equal work. To do otherwise is essentially to
discriminate against gay, lesbian, bisexual and
transgender employees.
"Providing equal benefits also show respect for the
diversity of employees and their individual
circumstances. Additionally, treating employees fairly is
a sound business practice. A non-discriminatory benefits
program enables employers to attract and retain the best
and most talented employees, lowers turnover and
recruitment costs, and helps improve job satisfaction and
performance."
Prior Legislation
AB 17 (Kehoe), Chapter 752, Statutes of 2003, prohibits
state agencies from entering into any contract for goods or
services in the amount of $100,000 or more with a
contractor that does not provide the same benefits to an
employee with a registered domestic partner that it
provides to an employee with a spouse.
AB 25 (Migden), Chapter 893, Statutes of 2001, expanded
California domestic partnership law by conferring on
registered domestic partners various rights, privileges and
standing granted by the state to married couples. Domestic
partners now enjoy (1) the right to bring an action for
wrongful death, (2) the right to receive continued health
care coverage as a surviving beneficiary of the decedent,
(3) the right to make health care decisions for an
incapacitated partner, (4) the right to adopt a partner's
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child as a stepparent, (5) the right to file a claim for
disability benefits a partner in the same manner as a
spouse may file such a claim, and (6) the right to be
nominated and appointed as conservator of an incapacitated
partner. AB 25 also required benefits policy carriers of
public agency employers to provide the same benefits to
employees whether they are married or have domestic
partners, and the same benefits to the employees' spouses
or domestic partners.
AB 26 (Migden), Chapter 588, Statutes of 1999, recognized
domestic partnerships in California, and specified the
manner by which such partnerships may be formed,
registered, and terminated. It provided certain rights to
domestic partners, such as hospital visitation rights and
health benefits to domestic partners of public employees.
AB 1080 (Kehoe), 2001-02 Session, was a substantially
identical bill that died in the Assembly pending
concurrence in Senate amendments.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 4/5/11)
Equality California (source)
California Commission on the Status of Women
California Communities United Institute
California Employment Lawyers Association
California Labor Federation
California National Organization for Women
California Nurses Association
Gray Panthers Association of California Networks
Professional Engineers in California Government
SEIU Local 1000
ARGUMENTS IN SUPPORT : The California Commission on the
Status of Women notes that it supported AB 17 (Kehoe) which
prohibited state agencies from entering into specified
contracts with businesses that discriminate between
employers with spouses and those with domestic partners.
Employee benefits account for 25 to 40 percent of an
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employee's compensation. Providing the same benefits to an
employee with a domestic partnership, or same-sex or
opposite-sex spouse ensures that workers receive equal pay
for equal work.
The California Employment Lawyers Association believes that
all employees should be treated equally, and are entitled
to work with dignity under the protection of the laws of
this state. Employers who discriminate should not be given
an unfair competitive advantage over employers who play
fair and follow our laws. The Gray Panthers and the
Professional Engineers in California Government agree that
employers who discriminate should not be given unfair
competitive advantages.
PQ:mw 4/6/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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