BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 117
                                                                  Page  1

          Date of Hearing:   June 14, 2011 

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                  SB 117 (Kehoe) - As Introduced:  January 20, 2011

           SENATE VOTE  :   21-15
           
          SUBJECT  :   Public contracts: prohibitions: discrimination based 
          on gender or sexual orientation. 

           SUMMARY  :   Prohibits a state agency from entering into a goods 
          or services contract worth $100,000 or more, if in the provision 
          of benefits, the contractor discriminates based on the gender or 
          sexual orientation of the spouses or domestic partners of its 
          employees.

           EXISTING LAW : 

          1)Prohibits a state agency from entering into a goods or 
            services contract worth $100,000 or more, if in the provision 
            of benefits, the contractor discriminates between employees 
            with spouses and employees with domestic partners, or 
            discriminates between the domestic partners and spouses of 
            those employees.

          2)Provides that, notwithstanding any other law, that same-sex 
            marriages entered outside of California before passage of 
            Proposition 8 will be legally recognized as such in 
            California; and couples in all such marriages entered into 
            after passage of Proposition 8 will have all of the same 
            rights, responsibilities and obligations as married couples, 
            with the sole exception of using the legal designation of 
            "marriage."

           FISCAL EFFECT  :   Unknown.  This bill has been keyed non-fiscal. 

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "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 








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          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 shows 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 employee job 
          satisfaction and performance." 

           Background  .  AB 17 (Kehoe), Chapter 752, Statutes of 2003, 
          prohibited a state agency from entering into a contract for 
          goods or services with a contractor who discriminates in the 
          provision of benefits between employees with spouses and 
          employees with domestic partners or between the spouses and 
          domestic partners of those employees.

          The sponsors note that several municipalities have already 
          passed ordinances similar to the language contained in this 
          bill.  This bill arose as a result of these recent laws 
          affecting legal marriages and same-sex couples, and prohibits a 
          state agency from entering into a goods or services contract 
          worth $100,000 or more, if in the provision of benefits, the 
          contractor discriminates based on the gender or sexual 
          orientation of the spouses or domestic partners of its 
          employees.  As a result of SB 54 (Leno), this bill applies to 
          out-of-state contractors conducting business in the state.

           Previous Legislation  .  SB 54 (Leno), Chapter 625, Statutes of 
          2009, provides that, notwithstanding any other law, that 
          same-sex marriages entered outside of California before passage 
          of Proposition 8 will be legally recognized as such in 
          California; and couples in all such marriages entered into after 
          passage of Proposition 8 will have all of the same rights, 
          responsibilities and obligations as married couples, with the 
          sole exception of using the legal designation of "marriage." 

          AB 17 (Kehoe), Chapter 752, Statutes of 2003, prohibited a state 
          agency from entering into a contract for goods or services with 
          a contractor who discriminates in the provision of benefits 
          between employees with spouses and employees with domestic 
          partners or between the spouses and domestic partners of those 








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          employees.  

           Double-referred  .  This bill is double-referred to Assembly 
          Judiciary Committee. 

           Support  .  According to the sponsor, Equality California, 
          "Existing law prohibits state agencies from entering into a 
          contract of $100,000 or more with businesses that, in the 
          provision of benefits, discriminate between employees with 
          spouses and employees with registered domestic partners.  This 
          bill would clarify that businesses that do business with the 
          state should not discriminate on the basis of sexual 
          orientation, whether the couple is in a domestic partnership or 
          in a same-sex marriage." 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Equality California (sponsor) 
          California Commission on the Status of Women 
          California Communities United Institute 
          California Employment Lawyers Association 
          California Faculty Association
          California Federation of Teachers 
          California Labor Federation 
          California National Organization for Women 
          California Nurses Association 
          City of West Hollywood
          Gray Panthers Association of California Networks 
          Los Angeles Gay and Lesbian Center
          Professional Engineers in California Government
          Service Employees International Union, Local 1000 
           
            Opposition 
           
          None on file. 

           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301