BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 117| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 117 Author: Kehoe (D) Amended: 6/30/11 in Assembly 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 SENATE FLOOR : 21-15, 5/9/11 AYES: Alquist, Corbett, De León, DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu, Liu, Lowenthal, Padilla, Pavley, Price, Simitian, Steinberg, Vargas, Wolk, Wright, Yee NOES: Anderson, Berryhill, Blakeslee, Cannella, Dutton, Emmerson, Fuller, Gaines, Harman, Huff, La Malfa, Runner, Strickland, Walters, Wyland NO VOTE RECORDED: Calderon, Correa, Negrete McLeod, Rubio ASSEMBLY FLOOR : 52-25, 7/14/11 - See last page for vote SUBJECT : Public contracts: prohibitions: discrimination based on gender or sexual orientation CONTINUED SB 117 Page 2 SOURCE : Equality California DIGEST : This bill 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. Assembly Amendments made clarifying changes to gender or sexual orientation of the spouses or domestic partners of employees. ANALYSIS : 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." This bill 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. Comments 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, and same-sex couples who CONTINUED SB 117 Page 3 were married in other states, 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, prohibited 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 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 CONTINUED SB 117 Page 4 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 8/12/11) Equality California (source) Betty Yee, Member, First District, State Board of Equalization 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 Los Angeles City of West Hollywood Gray Panthers Association of California Networks Los Angeles Gay and Lesbian Center 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 CONTINUED SB 117 Page 5 contracts with businesses that discriminate between employers with spouses and those with domestic partners. Employee benefits account for 25 to 40 percent of an 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. ASSEMBLY FLOOR : 52-25, 7/14/11 AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, Monning, Pan, Perea, V. Manuel Pérez, Portantino, Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, Garrick, Grove, Hagman, Halderman, Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner NO VOTE RECORDED: Beth Gaines, Gorell, Mitchell PQ:mw 8/12/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED SB 117 Page 6 CONTINUED