BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 404
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          Date of Hearing:  July 2, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                     SB 404 (Jackson) - As Amended:  May 24, 2013

                              As Proposed to be Amended

           SENATE VOTE  :  26-13
           
          SUBJECT  :  Fair Employment: Familial Status

           KEY ISSUE  :  SHOULD FAMILIAL STATUS BE PROTECTED AGAINST JOB  
          DISCRIMINATION AS IT HAS LONG BEEN PROTECTED AGAINST HOUSING  
          DISCRIMINATION?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS

          This measure is substantially similar to, although narrower  
          than, AB 1999 (Brownley) of last year, which the Committee  
          passed but was subsequently held in the Senate Appropriations  
          Committee.  The bill prohibits employment discrimination on the  
          basis of familial status in order to protect certain family  
          caregivers who work outside of the home.  According to the  
          author and supporters, employers often provide many kinds of  
          adjustments to employees for a wide range of reasons, but treat  
          workers with family responsibilities less favorably, often  
          because of a stereotype that they will not be good workers or  
          will have higher rates of absence.  Current law provides limited  
          rights to a leave of absence for the birth or adoption of a  
          child or for serious medical conditions of parents, children or  
          spouse.  This bill does not address leave time, nor does it  
          relieve employees from the full performance of their job duties;  
          rather it prohibits discrimination against family caregivers  
          compared to employees without family responsibilities.  As  
          before, the bill is stridently opposed by business interests who  
          note that it will hamper the ability of employers to manage  
          their workplaces, as indeed all anti-discrimination laws  
          admittedly do.  Opponents argue that the bill's definition of  
          the protected class is so broad as to cover virtually every  
          employee.  It should be noted, however, that as with all  
          protected statuses under existing discrimination law the bill  
          imposes no liability on any employer unless it can be proved  








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          that the employer engaged in discrimination against the person  
          because of the protected status.

           SUMMARY  :  Adds "familial status" to the protected categories of  
          the employment provisions of the Fair Employment and Housing Act  
          (FEHA).  Specifically,  this bill  :   

          1)Adds "familial status" to the list of characteristics on which  
            basis a person may not be discriminated against in employment.

          2)Defines "familial status" in this context to include "an  
            individual who provides medical or supervisory care to a  
            family member."

          3)Defines "family member" as a child, parent, spouse, domestic  
            partner, parent-in-law, as defined in various statutes.

          4)Makes related technical and conforming changes to various code  
            sections.

           EXISTING LAW  :
           
           1)Under the Fair Employment and Housing Act, prohibits  
            discrimination in housing and employment on the basis of race,  
            religious creed, color, national origin, ancestry, physical  
            disability, mental disability, medical condition, marital  
            status, sex, age, or sexual orientation.  (Gov. Code Sec.  
            12920 et seq.)

          2)Prohibits discrimination based on "familial status" in housing  
            under the FEHA, defined as one or more individuals under 18  
            years of age who reside with a parent, with another person  
            with care and legal custody of that individual (including  
            foster parents) or with a designee of that parent or other  
            person with legal custody.  Familial status also includes a  
            pregnant woman or a person who is in the process of adopting  
            or otherwise securing legal custody of any individual under 18  
            years of age.  (Government Code section 12955.2.)

          3)Provides certain protected employment leave of absence rights  
            for certain employees pursuant to the California Family Rights  
            Act (CFRA) for the birth of a child or placement of a child in  
            the employee's family for adoption or foster care; for the  
            serious health condition of the employee's child, parent or  
            spouse; or for the employee's own serious health condition.   








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            Leave time under CFRA may total up to 12 workweeks in a  
            12-month period.  An employer is not required to pay an  
            employee during a CFRA leave, except when an eligible employee  
            elects, or the employer requires, the employee to use any  
            accrued vacation time or other accumulated paid leave other  
            than accrued sick leave.  To be eligible for CFRA leave, an  
            employee must be either a full-time or part-time employee  
            working in California, have more than 12 months (52 weeks) of  
            service with the employer, have worked at least 1,250 hours in  
            the 12-month period before the date the leave begins, and work  
            at a location in which the employer has at least 50 employees  
            within 75 miles radius of the employee's work site.   
            (Government Code section 12945.2.)

           COMMENTS  :  The author explains the bill as follows:
          
               Although discrimination based on "familial status" is  
               explicitly prohibited under the housing provisions of the  
               FEHA, the same is not true under the employment provisions.  
                Presently, the FEHA does not adequately and explicitly  
               protect California workers from being discriminated against  
               at work based on their familial status.  Yet research shows  
               that employees are regularly discriminated against because  
               of "familial status."

               When used as a factor in an employment decision, . . .  
               stereotypes and assumptions about individuals based on  
               their familial status would be unlawful-as are, currently,  
               stereotypes and assumptions about workers based on their  
               race, national origin, sex, religion, marital status, and  
               other existing protected classifications.

               The bill is solely an anti-discrimination measure:  It does  
               not call for any employee entitlements or any additional  
               leave related to family responsibilities.  The bill also  
               has no effect on current law that prohibits familial status  
               discrimination in housing.  

          According to supporters, caregiver discrimination impacts a wide  
          array of workers - both men and women with children, as well as  
          workers without children who have elder care responsibilities,  
          sick spouses or partners, disabled family members, or other  
          family care obligations.  Most low-wage and hourly workers lack  
          workplace flexibility and are more likely to have family care  
          obligations, so they are often especially vulnerable to  








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          work/life conflict.  Supporters state that this bill would  
          prevent employers from unfairly using an individual's status as  
          a caregiver for a family member as a factor in employment  
          decisions.   

          Supporters argue that typical patterns of caregiver  
          discrimination include:

              Employer treats pregnancy and family medical leave  
               differently than non-caregiver leave;
              Discrimination against female workers because of pregnancy,  
               maternity leave, or caregiver status;
              General discrimination against and animosity toward male  
          caregivers; and/or
              Employer subjects caregivers to stricter rules because of  
          past caregiving absences.

           This Bill Proposes To Include "Family Caregiver Status" In The  
          List Of Prohibited Bases of Employment Discrimination  .  Despite  
          the frequently-cited importance of the family, and the  
          diminished governmental assistance available to many families as  
          the result of budget reductions, family caregivers - typically,  
          but not exclusively women - are currently provided no legal  
          protection against adverse action at work.  Many employees must  
          provide care not only for children but for aging parents.  The  
          absence of adequate health care coverage compounds this burden.   
          The absence of protection is believed to be of greatest  
          significance for lower-paid employees who are most often  
          vulnerable because they are unable to afford private family care  
          support, usually lack representation for problems at work, are  
          more susceptible to job loss, and are less able to find  
          replacement work.  

          This problem could be addressed in any number of ways.  If  
          governmental supports were more available, as in other  
          countries, there might be fewer demands on working family  
          members.  Such programs would cost money, however, and would  
          almost certainly face ideological opposition by those who oppose  
          tax increases or a larger role for government.  Alternatively,  
          higher wages and better jobs would allow more family caregivers  
          to stay out of the workforce.  That approach likewise faces  
          significant political obstacles.  This bill therefore asks  
          employers to bear an additional but perhaps tolerable  
          responsibility - that is, not to disfavor those with family  
          caregiving responsibilities.








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           Current Law Generally Does Not Protect Workers Who Face  
          Discrimination Because of Family Caregiving  .  When such  
          caregivers suffer retaliation and discrimination at work, they  
          have sometimes brought legal action using existing federal or  
          state statutes.  While these provide remedies for some forms of  
          discrimination, they do not directly address an employee's  
          status as a family caregiver as a protected class.  

          For example, in 2004, a school psychologist at an elementary  
          school, who had received positive performance reviews for two  
          years and had been assured that she would receive tenure, was  
          denied tenure after having a child.  Her supervisors expressed  
          concerns that it was "not possible for [her] to be a good mother  
          and have this job" and questioned whether her commitment to work  
          would drop after she received tenure because she "had little  
          ones at home."  Despite the fact that there was no  
          similarly-situated male employee for her to compare herself to,  
          the Second Circuit allowed her gender discrimination case to  
          proceed, holding that stereotypes about mothers not being  
          committed to or compatible with work were "themselves, gender  
          based."  (Back v. Hastings on Hudson Union Free School District,  
          (2004) 365 F.3d 107.)

          Perhaps the most apparent instance where "familial status" may  
          not have an adequate substitute in existing bases of unlawful  
          discrimination is evidenced in Tisinger v. City of Bakersfield,  
          (2002) WL 275525.  In that case, Derek Tisinger, a single father  
          who worked as a firefighter for approximately 13 years, was at  
          the top of the list for promotion to captain but was passed over  
          because of his family responsibilities.  Tisinger filed a  
          complaint against the City of Bakersfield for discrimination on  
          the basis of "marital status" under FEHA.  He claimed that he  
          unfairly received negative evaluation for his use of sick leave  
          and trading work shifts - done properly under employer policy -  
          to take care of his children.  The claim was eventually denied  
          because the Court held that Tisinger could not provide  
          sufficient evidence that discrimination occurred as a result of  
          "marital status."  Essentially, he was unable to show that being  
          a "single parent" in this case put him at a disadvantage as  
          opposed to being a "married parent."  In this particular  
          instance, Tisinger's promotional eligibility was more closely  
          linked to his relationship to his children - his "parental  
          status" or "familial status" - rather than his "marital status."









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           Recent Report on "Family Responsibilities Discrimination" (FRD)  .  
           According to a recent report unfair treatment of family  
          caregivers is a significant problem:

               Over the past five years, the issue of employment  
               discrimination based on family caregiving responsibilities  
               has grabbed the attention of legal and human resource  
               professionals nationwide.  Family responsibilities  
               discrimination, or FRD, is discrimination against employees  
               based on their responsibilities to care for family  
               members-including pregnancy discrimination, discrimination  
               against mothers and against fathers who actively  
               participate in caring for their children, and  
               discrimination against workers who care for aging parents  
               or ill or disabled spouses or family members. FRD can occur  
               when a new mother is denied a promotion based on the  
               assumption that she will no longer be as committed to work,  
               rather than her job performance; or when a father's  
               employer refuses to allow him to take paternity leave to  
               which he is legally entitled because "his wife should do  
               it;" or when an employee is fired for not meeting work  
               goals while he is on a legally protected family and medical  
               leave to care for an ailing parent.


               Also known as caregiver discrimination, FRD has become a  
               hot topic not only among attorneys and human resources  
               professionals, but also with workers, unions, employers,  
               courts, policymakers, and the press.  In 2006, the Center  
               for WorkLife Law (WLL) released the first study of FRD  
               lawsuits, analyzing more than 600 such suits filed between  
               1971 and 2005.  The 2006 study documented a 400% increase  
               in the number of FRD cases filed between 1996 and 2++005 as  
               compared to the number filed in the decade prior, between  
               1986 and 1995.  To date, WLL has now collected data on more  
               than 2000 FRD lawsuits; preliminary analysis of this much  
               larger group of cases shows the number of FRD lawsuits  
               filed continuing to increase each year between 2006 and  
               2008.
                
               Recognizing the growing scope of the problem, in 2007, the  
               U.S. Equal Employment Opportunity Commission (EEOC) issued  
               Enforcement Guidance on the topic of caregiver  
               discrimination, explaining in detail how existing federal  
               laws that prohibit sex and disability discrimination  








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               protect family caregivers at work.  The Guidance raised the  
               profile of the problem of FRD considerably, in particular  
               catching the attention of employers and the attorneys who  
               represent them.  In April 2009, the EEOC followed up with a  
               second publication on the topic, which supplements the 2007  
               Guidance by providing examples of best practices for  
               employers to decrease the likelihood of EEO complaints and  
               remove barriers to equal employment for workers with  
               caregiving responsibilities. 


               The number of lawsuits alleging FRD is vast and  
               ever-growing; yet while FRD is actionable under many  
               theories in existing federal and state law, with a very few  
               exceptions, FRD is not expressly prohibited in most state  
               and in federal statutes.  This means that, barring the few  
               exceptions, there are no laws that protect caregivers or  
               people with family responsibilities as a specific group or  
               class from discrimination. Instead, plaintiffs who have  
               sued their employers for FRD have successfully fit their  
               FRD-related claims into other legal theories in existing  
               state and federal law-for example as sex discrimination,  
               discrimination based on association with a person with a  
               disability, or a violation of state or federal family and  
               medical leave laws. 


               This report identifies that, while no federal law and only  
               a few state laws expressly prohibit FRD, at least 63 local  
               laws do-by specifically including parental or familial  
               status or family responsibilities as a protected  
               classification, like sex, race, religion, and so on, in  
               city or county codes that prohibit employment  
               discrimination.  The report presents the findings of a  
               survey by the Center for WorkLife Law of nearly 3,700 local  
               government laws (city and county ordinances and codes) that  
               found 63 local governments that explicitly prohibit  
               employment discrimination based on an employee's family  
               status or responsibilities."

          (See Bornstein and Rathmell, Caregivers as Protected Class? The  
          Growth of State and Local Laws Prohibiting Family  
          Responsibilities Discrimination (Center for Worklife Law,  
          University of California, Hastings College of the Law) (December  
          2009).)








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           Protections Similar To Those In This Bill Have Been Adopted In  
          Other States.   According to the same report cited above, a few  
          states have attempted to craft some level of protection for  
          employees that fall within this category.

          "While the vast majority of states have no explicit protections  
          against FRD, laws or regulations in Alaska, Connecticut, New  
          Jersey, and the District of Columbia are the exceptions to the  
          rule."  According the report, these states have enacted the  
          following provisions:


          Alaska.  Alaska's state employment anti-discrimination law  
          includes "parenthood" as a protected classification.  According  
          to the statute, the policy of the state and purpose for enacting  
          this provision was to prevent discrimination in employment  
          because of parenthood.  The statute applies to all private  
          employers with one or more employee, as well as the state and  
          its subdivisions, and provides a private right of action for  
          aggrieved employees.


          District of Columbia.  More encompassing in the caregiving  
          relationships it covers, the District of Columbia includes the  
          term "family responsibilities," as a protected classification in  
          its employment anti-discrimination law.  Under D.C. law, family  
          responsibilities means "the state of being, or the potential to  
          become, a contributor to the support of a person or persons in a  
          dependent relationship, irrespective of their number, including  
          the state of being the subject of an order of withholding or  
          similar proceedings for the purpose of paying child support or a  
          debt related to child support."  In Simpson v. DC OHR, the D.C.  
          Court of Appeals questioned the scope of this definition, noting  
          that "[t]he statute does not reveal whether the family  
          responsibilities must rise to the level of a legal duty?or  
          whether a moral obligation to care for an ill parent is  
          sufficient."  The District of Columbia Human Rights Act provides  
          for an administrative procedure and allows a private right of  
          action for damages and other related relief.

          Connecticut.  While Connecticut does not establish FRD as a  
          protected classification, its employment anti-discrimination  
          provisions prohibit employers from requesting or requiring  
          employee information related to "familial responsibilities"  








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          unless the information is directly related to a bona fide  
          occupational qualification.  Unlike the Alaska and D.C.  
          statutes, this is not a general prohibition against employment  
          discrimination on the basis of familial responsibilities, but  
          rather a limitation on an employer's right to collect personal  
          information that could be used for a discriminatory purpose.   
          The Connecticut employment discrimination statute also provides  
          a private right of action to employees. 


          New Jersey.  Similarly, New Jersey does not include FRD as a  
          protected classification in its employment anti-discrimination  
          protections, but?the regulations accompanying the state  
          anti-discrimination laws expressly prohibit state (but not  
          private) employers from discriminating against their employees  
          based on familial status.  The regulation prohibits not only  
          discriminatory acts and harassment based on familial status but  
          also retaliation for participation in the complaint process.   
          For enforcement, it authorizes use of a wide range of remedial  
          measures including training, therapy, termination of employment,  
          and referral to other agencies for prosecution.

          This Measure Is Similar To But More Narrow Than Prior Measures  
          Passed By This Committee.   This is substantially similar to last  
          year's AB 1999 (Brownley), which passed this Committee but was  
          subsequently held in Senate Appropriations.  This bill is  
          narrower than AB 1999 however in that it covers fewer family  
          relationships, omitting siblings, grandparents and grandchildren  
          who were covered by AB 1999.

          This bill is also similar to but more limited than AB 1001  
          (Skinner) of 2009 which sought to add "familial status" as a  
          protected category under the FEHA.  AB 1001 defined "familial  
          status" as being an individual who is or who will care for a  
          family member.  AB 1001 passed this Committee but was held under  
          submission in the Assembly Appropriations Committee.  

          Previously, this Committee passed SB 836 (Kuehl) of 2007 which  
          would have protected "familial status" in employment under the  
          FEHA, defined as being an individual who is or who will be  
          caring for or supporting a family member.  SB 836 further  
          defined "caring for or supporting" as any of the following:   
          providing supervision or transportation; providing psychological  
          or emotional comfort and support; or addressing medical,  
          educational, nutritional, hygienic, or safety needs.  That  








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          measure was vetoed by Governor Schwarzenegger.

           ARGUMENTS IN OPPOSITION  :  A coalition of business interests lead  
          by the California Chamber of Commerce submitted the following  
          statement in opposition to the bill: 

               SB 404 (Jackson) ? has been labeled as a JOB KILLER, as it  
               will dramatically increase the amount of frivolous  
               litigation under the Fair Employment and Housing Act (FEHA)  
               based upon an employee's "familial status," which will  
               ultimately hamper the ability of California employers to  
                                                         conduct business and manage their employees.

               SB 404 proposes to include "familial status" as a protected  
               classification under FEHA to prevent discrimination on such  
               basis.  The term "familial status" is broadly defined as:  
               (1) any individual who provides "medical or supervisory  
               care" to a child, parent, spouse, or domestic partner; (2)  
               any employee who is "perceived" as someone who provides  
               medical or supervisory care to a child, parent, spouse,  
               domestic  partner, or in-law; or (3) any person who is  
               "associated" with a person who provides medical or  
               supervisory care to a child, parent, spouse, domestic   
               partner, or in-law.  The term "medical" care is undefined  
               and therefore could be liberally interpreted to include  
               such tasks as administering over the counter medication  
               once a day or even driving a listed family member to a  
               doctor's appointment on a quarterly basis.  Moreover,  
               "supervisory" care is also ambiguous and would expand this  
               proposed classification to employees who are not actually  
               providing any care to a covered family member, but rather  
               "supervising" the care the family member receives.  
               Furthermore, SB 404 applies to anyone who is perceived to  
               provide familial care or associated with someone who  
               provides familial care.   Such a broad application of a  
               protected classification will essentially encompass almost  
               all employees in the workforce and, therefore, will hamper  
               an employer's ability to manage their business, as any  
               adverse employment action the employer takes against an  
               employee could be potentially challenged as discriminatory  
               on the basis of "familial status."

               This burden that SB 404 creates will not only impact large  
               businesses, but also small businesses.  FEHA applies to any  
               employer who has five employees or more.  Accordingly, SB  








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               404 will subject these small businesses to potential costly  
               litigation based on the allegation that an employee who  
               suffered an adverse employment action provided familial  
               medical or supervisory care, was perceived as providing  
               such care, or was associated with someone providing such  
               care.     

               California already protects employees from discrimination  
               on the basis of sex, pregnancy, medical condition, mental  
               disability, or physical disability.  Similarly, California  
               provides employees with leave to care for the serious  
               medical condition of family members, which may be  
               compensated through California's Paid Family Leave Act.  
               Additionally, California requires "kin care" that mandates  
               an employee be allowed to use at least half of any accrued  
               sick leave to care for family members.  These various  
               leaves and protections are in addition to those provided by  
               federal law.  Given these existing protections, there is  
               simply no basis to include such a broad protected  
               classification under California law as proposed by SB 404,  
               other than to increase litigation opportunities.   

               There were approximately 19,500 discrimination claims filed  
               in 2010 with the Department of Fair Employment and Housing  
               under FEHA, which were 1,000 complaints more than in 2009.   
               Notably, over 4,000 of these complaints were dismissed due  
               to lack of evidence of any violation.  Adding this new  
               expansive classification to FEHA will only cause such cases  
               to dramatically increase, thereby burdening the state  
               agency as well as California employers with costly  
               litigation.

           Author's Technical Amendment.   In order to avoid inadvertent  
          confusion regarding potential negative implications with respect  
          to the relationship between the FEHA and other employment laws,  
          the author properly proposes to revise the bill with the  
          following technical amendment:

          SEC. 6. The Legislature intends that  the   amendments of Sections  
          12920, 12921, 12940, and 12955.2 to the Government Code made by  
          this act  , the provisions of this chapter do not supersede,  
          limit, or preempt any federal, state, or local law that provides  
          greater protections from employment discrimination than those  
          provided in  these sections  this chapter. The Legislature further  
          intends that  these amendments are  this chapter is not intended  








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          to limit or preclude any claim or cause of action  on the basis  
          of familial status or family responsibilities  under federal,  
          state, or local law.
           
           Prior Related Legislation  .  This bill is substantially similar  
          to AB 1999 (Brownley) of 2012, which passed this Committee but  
          was held on suspense in the Senate Appropriations Committee.   
          Prior attempts at providing familial status y protection have  
          likewise proved unsuccessful.  SB 836 (Kuehl, 2007), which was  
          similar to this bill, would have added "familial status" to  
          employment anti-discrimination protections.  SB 836 was vetoed  
          by Governor Schwarzenegger.  AB 1001 (Skinner and Ma, 2009) also  
          would have prohibited employment discrimination based on  
          familial status.  AB 1001 was held in the Assembly  
          Appropriations Committee.  
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Employment Lawyers Association (co-sponsor)
          Center for Worklife Law (co-sponsor)
          Equal Rights Advocates (co-sponsor)
          9 to 5 National Association of Working Women
          American Association of University Women
          BreastfeedLA
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Immigrant Policy Center
          California Labor Federation, AFL-CIO
          California Nurses Association
          California Professional Firefighters
          California State Association of Electrical Workers
          California State Pipe Trades Council
          California Teachers Association
          California Teamsters Public Affairs Council
          California Women's Law Center
          Cancer Legal Resource Center
          Communications Workers of America, AFL-CIO, District 9
          Engineers & Scientists of California, IFPTE Local 20
          Family Caregiver Alliance
          Glendale City Employees Association
          International Longshore & Warehouse Union
          Laborers Locals 777 & 792
          Labor Project for Working Families








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          Legal Aid Society - Employment Law Center
          Mexican American Legal Defense and Educational Fund
          National Association of Social Workers, California Chapter
          Organization of SMUD Employees
          Professional and Technical Engineers, IFPTE Local 21
          San Bernardino Public Employees Association
          Santa Rosa City Employees Association
          Service Employees International Union, California
          UNITE-HERE, AFL-CIO
          United Auto Workers, Local 2865
          United Food and Commercial Workers Western States Council
          Utility Workers Union of America, Local 132
          Western States Council of Sheet Metal Workers
           
            Opposition 
           
          Air Conditioning Trade Association
          Associated Builders and Contractors of California
          California Association of Joint Powers Authorities
          California Bankers Association
          California Chamber of Commerce
          California Chapter of the American Fence Association
          California Employment Law Council
          California Farm Bureau Federation
          California Fence Contractors Association
          California Grocers Association
          California Independent Grocers Association
          California League of Food Processors
          California Manufacturers and Technology Association
          California Restaurant Association
          California Retailers Association
          Chambers of Commerce Alliance of Ventura & Santa Barbara  
          Counties
          Civil Justice Association of California
          Culver City Chamber of Commerce
          Engineering Contractors Association
          Flasher Barricade Association
          Fullerton Chamber of Commerce
          Goleta Valley Chamber of Commerce
          Greater Conejo Valley Chamber of Commerce
          Greater Bakersfield Chamber of Commerce
          Greater Fresno Area Chamber of Commerce
          Marin Builders Association
          National Federation of Independent Business
          Palm Desert Area Chamber of Commerce








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          Plumbing-Heating-Cooling Contractors Association of California
          Rancho Cordova Chamber of Commerce
          Redondo Beach Chamber of Commerce
          South Bay Association of Chambers of Commerce
          Southwest California Legislative Council
          Tulare Chamber of Commerce
          Visalia Chamber of Commerce
          Western Electrical Contractors Association

           Analysis Prepared by  :   Kevin G. Baker / JUD. / (916) 319-2334