BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 117
                                                                  Page  1


          SENATE THIRD READING
          SB 117 (Kehoe)
          As Amended  June 30, 2011
          Majority vote 

           SENATE VOTE  :21-15  
           
           BUSINESS & PROFESSIONS     6-3  JUDICIARY           7-3         
           
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          |Ayes:|Hayashi, Allen, Butler,   |Ayes:|Feuer, Atkins, Dickinson, |
          |     |Eng, Hill, Ma             |     |Huber,                    |
          |     |                          |     |Huffman, Monning,         |
          |     |                          |     |Wieckowski                |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bill Berryhill, Hagman,   |Nays:|Wagner, Beth Gaines,      |
          |     |Smyth                     |     |Jones                     |
           ----------------------------------------------------------------- 
           
          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 between employees with 
          same or different sex spouses or partners, or discriminates 
          between same or different sex spouses or partners of 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."









                                                                  SB 117
                                                                  Page  2


           FISCAL EFFECT  :  Unknown.  This bill has been keyed non-fiscal by 
          the Legislative Counsel. 

           COMMENTS  :  According to the author, "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 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." 

          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), Chapter 625, Statutes 
          of 2009, this bill applies to out-of-state contractors 
          conducting business in the state.


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










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