BILL ANALYSIS Ó SENATE JUDICIARY COMMITTEE Senator Noreen Evans, Chair 2013-2014 Regular Session SB 245 (Correa) As Amended January 6, 2014 Hearing Date: January 14, 2014 Fiscal: No Urgency: No BCP SUBJECT Contracts DESCRIPTION This bill would update the codified findings and declarations that support the existing requirement for persons who negotiate certain types of contracts in Spanish, Chinese, Tagalog, Vietnamese, or Korean to provide the other party with a translated contract. BACKGROUND Under existing law, any person who negotiates certain types of contracts in Spanish, Chinese, Tagalog, Vietnamese, or Korean is required to provide the other party with a translated version of the contract the language in which it was negotiated. (Civ. Code Sec. 1632.) That requirement was first enacted by the Legislature in 1976 to increase consumer information and protections for the state's sizeable and growing Spanish-speaking population. Those protections were later expanded to also apply to contracts primarily negotiated in Chinese, Tagalog, Vietnamese, or Korean. In expanding the translation requirements to cover those languages, the Legislature codified a finding that the five specified languages reflect those most widely spoken by Californians in their homes based upon data from the United States Census of 2000. This bill would strike the finding related to the United States Census of 2000 and, instead, codify a finding that the top five languages, other than English, that are most widely spoken in households with limited English proficiency are Spanish, (more) SB 245 (Correa) Page 2 of ? Chinese, Filipino/Tagalog, Vietnamese, and Korean. That finding would be based on data from the American Community Survey, an annual statistical survey conducted by the United States Census Bureau, for the combined years 2009 through 2011. This bill would not change the substantive translation requirements of Section 1632. CHANGES TO EXISTING LAW Existing law requires any person engaged in a trade or business who negotiates primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, orally or in writing, in the course of entering into specified contracts, to deliver to the other party to the contract or agreement and prior to the execution thereof, a translation of the contract or agreement in the language in which the contract or agreement was negotiated, which includes a translation of every term and condition in that contract or agreement. (Civ. Code Sec. 1632 (b).) Existing law finds and declares that, according to the United States Census of 2000, of the more than 12 million Californians who speak a language other than English in the home, approximately 4.3 million speak an Asian dialect or another language other than Spanish. Existing law further finds and declares that the top five languages other than English most widely spoken by Californians in their homes are Spanish, Chinese, Tagalog, Vietnamese, and Korean. Together, these languages are spoken by approximately 83 percent of all Californians who speak a language other than English in their homes. (Civ. Code Sec. 1632 (a)(2).) This bill would strike the above findings and declarations and, instead, state that according to data from the American Community Survey, the top five languages other than English that are most widely spoken in households with limited English proficiency, are Spanish, Chinese, Filipino/Tagalog, Vietnamese, and Korean, based on data from combined year 2009 to 2011. This bill would additionally find and declare that among the 3.8 million households in California with limited English proficiency, approximately 3.5 million people speak either Spanish, Chinese, Filipino/Tagalog, Vietnamese, or Korean at home. This compares to approximately 19.6 million people who speak only English at home. SB 245 (Correa) Page 3 of ? COMMENT 1. Stated need for the bill According to the author: Civil Code Section 1632 lists five foreign languages into which a variety of different financial contracts and other financial documents must be translated. Civil Code Section 1632 and the myriad other code sections that refer back to it are intended to help Californians with limited English proficiency better understand key financial contracts into which they enter and other important consumer protection documents they receive. The code section was first enacted in 1976. The languages referenced in the section have been periodically updated since that time, to reflect California's changing demographics. However, the code section has not been updated to reflect census data more recent than the year 2000. . . . Because the five foreign languages that are most commonly spoken at home in California households with limited English proficiency are the same as the five foreign languages currently listed in [Civil Code Section 1632], SB 245 does not propose to change any of the languages referenced in the section. Instead, we are simply updating the findings in the code section, so that the California codes reflect the most recent census data. 2. Top five languages other than English Under existing law, Civil Code Section 1632, a contract must be translated into the language in which it was negotiated if it was negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean. Those five languages seek to capture the top five languages, other than English, that are spoken by Californians in their homes. As codified in existing findings and declarations, those five languages are spoken by approximately 83 percent of Californians who speak a language other than English in their homes. The codified basis for that percentage is the United States Census of 2000. This bill seeks to update those findings and declarations so as to reflect recent information provided by the American Community Survey (ACS). Accordingly, this bill would strike the existing SB 245 (Correa) Page 4 of ? findings and declarations and, instead, codify that those five languages remain the top five spoken by households with limited English proficiency. The bill would further codify that among the 3.8 million California households with limited English proficiency, approximately 3.5 million people speak Spanish, Chinese, Filipino/Tagalog, Vietnamese, or Korean at Home. To put those numbers in context, the bill would further codify that 19.6 million people speak only English at home. Although prior codified statistics were based upon the United States Census of 2000, the proposed numbers in this bill reflect data from the ACS, which the author notes has replaced the decennial census for detailed socioeconomic data information about United States residents. The ACS, conducted by the United States Census Bureau, is described as "an ongoing survey that provides data every year -- giving communities the current information they need to plan investments and services. Information from the survey generates data that help determine how more than $400 billion in federal and state funds are distributed each year." (United States Census Bureau, About the American Community Survey http://www.census.gov/acs/www/about_the_survey/american_community _survey/[as of Jan. 8, 2014].) Staff notes that this bill seeks to only change the codified findings and declarations to reflect updated statistics and would not substantively modify the requirement to translate contracts. Considering that the present statute reflects statistics that are nearly 15 years old, updating the codified findings by including more recent data provided by the ACS would arguably inform the public that the Legislature is still tracking the languages spoken in California homes. 3. Amendment to clarify the codified spoken-language data It should be noted that the existing findings and declarations refer to the number of Californians who "speak a language other than English in the home" while the language of the bill refers to the number of people in California "with limited English proficiency." Thus, based on data provided by the ACS, the proposed findings focus on Californians with limited English proficiency, but, do not state the total number of Californians who do speak a language other than English in the home. Considering that the existing findings do reference those individuals, it is arguably important to continue to codify the number of Californians who speak a language other than English SB 245 (Correa) Page 5 of ? in the home (as opposed to just those with limited English proficiency). Accordingly, the following author's amendment would clarify the proposed spoken-language data by including the number of Californians who speak a language other than English in the home (15.2 million), and clarify that of those who do speak a language other than English at home, 8.4 million people speak English very well and 3.0 million speak English well. Of the remaining 3.8 million individuals (who have limited or no English proficiency), 3.5 million speak the five languages listed in Civil Code Section 1632 at home. Author's amendment : On page 4, strike out lines 14 through 26, inclusive, and insert: (3) According to data from the American Community Survey, which has replaced the decennial census for detailed socioeconomic information about United States residents, approximately 15.2 million Californians speak a language other than English at home, based on data from combined years 2009 through 2011. This compares to approximately 19.6 million people, who speak only English at home. Among the Californians who speak a language other than English at home, approximately 8.4 million speak English very well, and another 3.0 million speak English well. The remaining 3.8 million Californians surveyed do not speak English well or do not speak English at all. Among this group, the five languages other than English that are most widely spoken at home are Spanish, Chinese, Filipino/Tagalog, Vietnamese, and Korean. These five languages are spoken at home by approximately 3.5 million of the 3.8 million Californians with limited or no English proficiency, who speak a language other than English at home. Support : None Known Opposition : None Known HISTORY Source : Author SB 245 (Correa) Page 6 of ? Related Pending Legislation : None Known Prior Legislation : None Known **************