BILL ANALYSIS                                                                                                                                                                                                    Ó





                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          AB 1050 (Low)
          Version: April 21, 2015
          Hearing Date: June 23, 2015
          Fiscal: Yes
          Urgency: No
          RD   


                                        SUBJECT
                                           
                       State employees:  charitable deductions

                                      DESCRIPTION  

          Existing law authorizes the California Victim Compensation and  
          Government Claims Board to approve plans for payroll deduction  
          from the salaries or wages of state officers and employees, as  
          specified, for charitable contributions to the agency handling  
          the principal combined fund drive in any area. Existing law  
          requires that the principal combined fund drive agency, as well  
          as specified charitable organizations, certify under penalty of  
          perjury to the board that it is in compliance with the Fair  
          Employment and Housing Act as a condition of receiving these  
          designated deductions.

          This bill would require that a charitable organization provide  
          the board with either:    (1) the written nondiscrimination  
          policy of the organization; or (2) a written statement to  
          indicate that the organization does not have a written  
          nondiscrimination policy, but otherwise complies with the Unruh  
          Civil Rights Act. 

                                      BACKGROUND  

          California law, the Fair Employment and Housing Act (FEHA) and  
          the Unruh Civil Rights Act (Unruh), prohibit discrimination in  
          employment, housing, public accommodation, and services provided  
          by business establishments on the basis of specified personal  
          characteristics such as sex, race, color, national origin,  
          religion, and disability.  Separately, California law allows for  








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          the California Victim Compensation and Government Claims Board  
          ("board") to approve plans for payroll deduction from state  
          employees' salaries or wages for charitable contributions to the  
          agency handling the principal combined fund drive in any area.   
          (Gov. Code Sec. 13293(a).)  In accordance with this allowance,  
          state employees are permitted to authorize deductions to be made  
          from their salaries or wages for payment of various purposes,  
          including for the payment of charitable contributions under any  
          plan approved by the board in accordance with procedures  
          established by the Controller. 
          Existing law already requires that the principal combined fund  
          drive agency, any charitable organization that is an affiliated  
          member beneficiary of the principal combined fund drive, and any  
          charitable organization approved by the board to receive  
          designated deductions on the payroll authorization form of the  
          principal fund drive, certify under penalty of perjury to the  
          board that it is in compliance with FEHA as a condition of  
          receiving these designated deductions.  This bill would now add  
          that the principal combined fund drive agency, and specified  
          charitable organizations, must also certify under penalty of  
          perjury to the board that it is in compliance with Unruh. This  
          bill would also require the charitable organization to provide  
          the board with either: (1) the written nondiscrimination policy  
          of the organization; or (2) a written statement to indicate that  
          the organization does not have a written nondiscrimination  
          policy, but otherwise complies with Unruh. 

                                CHANGES TO EXISTING LAW
           
           Existing law  , the Fair Employment and Housing Act (FEHA),  
          prohibits discrimination in housing and employment on the basis  
          of race, religious creed, color, national origin, ancestry,  
          physical disability, mental disability, medical condition,  
          genetic information, marital status, sex, gender, gender  
          identity, gender expression, age, sexual orientation, or  
          military and veteran status.  (Gov. Code Sec. 12920 et seq.)
           
          Existing law  , the Unruh Civil Rights Act, provides that all  
          persons in California are free and equal, and regardless of a  
          person's sex, race, color, religion, ancestry, national origin,  
          disability, medical condition, genetic information, marital  
          status, or sexual orientation, everyone is entitled to the full  
          and equal accommodations, advantages, facilities, privileges, or  
          services in all business establishments.  (Civ. Code Sec. 51.)
           







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          Existing law  provides the California Victim Compensation and  
          Government Claims Board may approve plans for payroll deduction  
          from the salaries or wages of state officers and employees for  
          charitable contributions to the agency handling the principal  
          combined drive in any area.  (Gov. Code Sec. 13293(a).) Existing  
          law permits state employees to authorize deductions from their  
          wages and salaries for various purposes such as for the payment  
          of charitable contributions under any plan approved by the board  
          in accordance with procedures established by the Controller.   
          (Gov. Code Sec. 1151(f).)  

           Existing law  requires that the principal combined fund drive  
          agency, any charitable organization that is an affiliated member  
          beneficiary of the principal combined fund drive, and any  
          charitable organization approved by the board to receive  
          designated deductions on the payroll authorization form of the  
          principal fund drive, certify under penalty of perjury to the  
          board that it is in compliance with FEHA as a condition of  
          receiving these designated deductions.  (Gov. Code Sec.  
          13293(f).)

           This bill  would require that the above entities certify under  
          penalty of perjury that they have also complied with Unruh. This  
          bill would also require the charitable organization to provide  
          the board with either the written nondiscrimination policy of  
          the organization, or, a written statement to indicate that the  
          organization does not have a written nondiscrimination policy,  
          but otherwise complies with Unruh. 

           This bill  would make other technical, nonsubstantive changes. 

                                        COMMENT
           
          1.   Stated need for the bill  

          According to the author: 

            The "Our Promise: California State Employees Giving at Work"  
            is a program administered by the California Victim  
            Compensation and Government Claims Board. Formerly the  
            California State Employee Charitable Campaign, the campaign  
            provides state employees with an annual list of organizations  
            to which they can make contributions to[,] through the  
            convenience of payroll deduction.








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            While the list of organizations are vetted and approved based  
            on their federal tax-exempt status and compliance to  
            California Department of Fair Employment and Housing  
            Regulations, there are still organizations on the list that do  
            not fully abide by the state's nondiscrimination policy.

            An example is the Boy Scouts of America (BSA). In 2012, BSA  
            denied Ryan Andresen, a California Boy Scout, his Eagle Scout  
            award because he is openly gay. BSA's exclusion of youth like  
            Andresen flies in the face of state nondiscrimination law.  
            Although BSA has since reversed its policy so that no youth  
            may be denied membership on the basis of sexual orientation,  
            they continue to maintain its ban on gay adult leaders.

            AB 1050 will require charitable organizations participating in  
            the campaign drive to submit to the board its  
            nondiscrimination policy as part of its annual application. In  
            no way does this prohibit employees from making a donation to  
            an organization like the Boy Scouts nor does it prevent those  
            donations from being tax-deductible.

          2.    State already requires participating charitable donations  
            certify they have complied with FEHA  

          As noted in the Background, existing law allows for the  
          California Victim Compensation and Government Claims Board  
          ("board") to approve plans for payroll deduction from state  
          employees' salaries or wages for charitable contributions to the  
          agency handling the principal combined fund drive in any area.   
          (Gov. Code Sec. 13293(a).)  In accordance with this provision,  
          state employees are permitted to authorize deductions to be made  
          from their salaries or wages for payment of various purposes,  
          including for the payment of charitable contributions under any  
          plan approved by the board in accordance with procedures  
          established by the Controller.  (Gov. Code Sec. 1151(f).)   
          According to the "Our Promise: California State Employees Giving  
          at Work" website, over the previous five years, this initiative  
          has raised upwards of $7 million dollars.  In 2014, out of a  
          total of 261,704 employees, 35,478 (14 percent) donated a total  
          of $6,460,474, and, in 2013, employees donated $6,661,903.  (See  
          Our Promise, Results  [as  
          of Jun. 12, 2015].)

          Notably, existing law already requires that a charitable  
          organization participating in this initiative, as approved by  







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          the board, certify under penalty of perjury to the board that it  
          is in compliance with Fair Employment and Housing Act (FEHA) as  
          a condition of receiving these designated deductions.  (Gov.  
          Code Sec. 13293(f).) This bill would require that the  
          organization also certify that it is in compliance with the  
          Unruh Civil Rights Act.   Whereas FEHA prohibits discrimination  
          in housing and employment on the basis of race, religious creed,  
          color, national origin, ancestry, physical disability, mental  
          disability, medical condition, genetic information, marital  
          status, sex, gender, gender identity, gender expression, age,  
          sexual orientation, or military and veteran status, Unruh  
          prohibits discrimination in services provided by business  
          establishments on the basis of those characteristics.  

          Accordingly, this bill would appear to be in line with the  
          general state public policy that prohibits any person in the  
          State of California from being unlawfully denied full and equal  
          access to the benefits of, or be unlawfully subjected to  
          discrimination under any program or activity that is conducted,  
          operated, or administered by the state, or receives any  
          financial assistance from the state, on the basis of race,  
          national origin, ethnic group identification, religion, age,  
          sex, sexual orientation, color, genetic information, or  
          disability, be unlawfully denied full and equal access to the  
          benefits of, or be unlawfully subjected to discrimination under,  
          any program or activity that is conducted, operated, or  
          administered by the state or by any state agency, is funded  
          directly by the state, or receives any financial assistance from  
          the state. (See Gov. Code Sec. 11135.)  
           
          Equality California, the sponsor of this bill notes that  
          "[w]hile much progress has been made in the charitable sector  
          regarding nondiscrimination, there are still some organizations  
          that may openly discriminate based on sexual orientation and  
          gender identity, in particular.  Such policies institutionalize  
          the rejection lesbian, gay, bisexual, transgender people face  
          simply because of who they are.  It is important that we ensure  
          these organizations are held to the same standard of inclusivity  
          as we hold the state itself."   

           Support  :  American Civil Liberties Union; Anti-Defamation  
          League; LGBT Community Center of the Desert; Gender Health  
          Center; Gay-Straight Alliance Network of California

           Opposition  :  None Known 







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                                        HISTORY
           
           Source  :  Equality California 

           Related Pending Legislation  :  None Known 

           Prior Legislation  :  None Known 

           Prior Vote  :

          Assembly Floor (Ayes 62, Noes 7)
          Assembly Appropriations Committee (Ayes 13, Noes 4)
          Assembly Accountability and Administrative Review Committee  
          (Ayes 8, Noes 1)

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