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,  
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          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.
                                                                      



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                                        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  
                                                                      



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          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  
                                                                      



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          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

                                                                      



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           Related Pending Legislation  : None Known

           Prior Legislation  : None Known

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