BILL ANALYSIS Ó AB 1887 Page 1 Date of Hearing: March 15, 2016 ASSEMBLY COMMITTEE ON JUDICIARY Mark Stone, Chair AB 1887 (Low) - As Amended March 10, 2016 SUBJECT: State government: discrimination: travel KEY ISSUES: 1)Should state agencies be prohibited, except as provided, from requiring employees to travel to states that discriminate or permit discrimination on the basis of sexual orientation, gender identity, or gender expression? 2)Should state agencies be prohibited, except as provided, from approving requestS for state-funded or state-sponsored travel to states that discriminate or permit discrimination on the basis of sexual orientation, gender identity, or gender expression? SYNOPSIS Last year Indiana Governor Mike Pence signed a Religious Freedom Restoration Act (RFRA), which would potentially allow businesses to refuse service to persons on the basis of sexual orientation, if to do so would offend the religious scruples of the AB 1887 Page 2 individual or business. To use a much cited example, a wedding photographer who objected to same-sex marriage could under Indiana Law refuse to provide photographic services for a same-sex wedding. According to the National Conference of State Legislatures, 21 states have enacted some form of RFRA legislation, with Indiana and Arkansas being the most recent. Although there is some debate over how widely these laws are actually invoked, some legal commentators contend that the U.S. Supreme Court decision in Burwell v. Hobby Lobby (2014), which permitted a for-profit business to deny contraception coverage on religious grounds, could lead to more laws and more people invoking them. Yet, however extensive or effective such laws may be, the author and sponsors contend that California, a leader in preventing discrimination against the LGBT community, should not support such states. California's Unruh Civil Rights Act prohibits all business establishments "of any kind whatsoever" from discriminating on the basis of sexual orientation, gender identity, and gender expression. Given the values expressed in California law, the author and sponsors believe it would be inappropriate to allow state funds to support states with discriminatory laws that are contrary to those codified values. As a step in this direction, this bill would prohibit state agencies from requiring employees to travel to states that discriminate against the LGBT community, or that permit such discrimination by private entities. In addition, the bill would prohibit state agencies from approving requests for travel funds to such states, meaning that if employees, or commission or board members, voluntarily travel to such states on professional or work-related matters, they could not receive reimbursement for that travel. The bill is co-sponsored by Equality California and the National Center for Lesbian Rights. There is no registered opposition. As noted in the analysis, however, there a number of practical questions that still need to be addressed, and the author may wish to consider further amendments should the bill pass out of this Committee. SUMMARY: Prohibits state agencies from requiring state employees to travel to states that discriminate, as specified, AB 1887 Page 3 and prohibits state agencies from approving state-funded travel to such states, except as provided. Specifically, this bill: 1)Prohibits any state agency, department, board, authority, or commission, including an agency, department, board, authority, or commission of the University of California or the California State University, from doing either of the following: a) Require its employees, officers, or members to travel to any state having laws that sanction or require discrimination on the basis of sexual orientation, gender identity, or gender expression. b) Approve a request for state-funded or state-sponsored travel to a state having laws that sanction or require discrimination on the basis of sexual orientation, gender identity, or gender expression. 2)Specifies that the prohibition created by this bill does not apply to travel that is necessary for the enforcement of California law, to meet prior contractual obligations, or for the protection of public health, welfare, or safety. EXISTING LAW: 1)Provides that any state officer or employee of any state agency may confer with other persons, associations, or organizations outside of the state wherever it may be of assistance in the conduct of state business. Permits, to the extent that funds are authorized and available, reimbursement for actual and necessary expenses for travel outside of the state as authorized. Specifies that this section does not AB 1887 Page 4 apply to legislators or their staff. (Government Code Section 11032.) 2)Provides, under the Unruh Civil Rights Act, that all persons within this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status, are entitled to the full and equal accommodations, advantages, facilities, or services of all business establishments of every kind whatsoever. Defines "sex" to include gender identity and gender expression. (Civil Code Section 51.) FISCAL EFFECT: As currently in print this bill is keyed fiscal. COMMENTS: According to the National Conference of State Legislatures (NCLS) website, as of late 2015, twenty-one states had enacted some form of Religious Freedom Restoration Act (RFRA), with Indiana and Arkansas being the most recent. Some legal commentators contend that the U.S. Supreme Court decision in Burwell v. Hobby Lobby (2014), which permitted a for-profit business to deny contraception coverage on religious grounds, may have paved the way for such laws. These laws, some of which were modeled on the 1993 federal RFRA - which was held not to apply to the states in 1997 - vary in many respects. While some appear to implicitly authorize businesses to discriminate on religious grounds, others simply declare that any law that infringes upon a person's religious liberty must be held to a "strict scrutiny" standard of review. ( http://www.ncsl.org/research/civil-and-criminal-justice/state-rf ra-statutes.aspx ; see also "How Hobby Lobby Paved the Way for Indiana's 'Religious Freedom' Bill," Washington Post March 27, 2015; "Reading Hobby Lobby in Context, New York Times July 19, 2104.) However, whatever variations may exist in the several AB 1887 Page 5 state RFRA laws, they would all seem to be at odds with California's strong anti-discrimination laws. The anti-discrimination measures are not only set forth in the Unruh Civil Rights Acts; a number of other statutes prohibit various forms of discrimination based on any of the classifications set forth in the Unruh Civil Rights. The author and sponsors believe that California's commitment to anti-discrimination laws should extend to its relationship with other states. Recent Historical Background: As noted, the state laws to which this bill responds were originally modeled after the federal Religious Freedom Restoration Act (RFRA) in 1993. The federal RFRA was itself a response to the U.S. Supreme Court's decision in Employment Division v. Smith (1990) 494 U.S. 872. Prior to the Smith decision, the Supreme Court had issued a number of decisions holding that, under the Free Exercise clause of the First Amendment, government policies would need to accommodate the rights of religious observant persons, unless there was a "compelling state interest" for not accommodating religious concerns. Most of the cases that came before the Court considered questions like the following: Could a state agency require an employee to take work on his or her Sabbath as a condition of obtaining unemployment benefits. Could a state, under its compulsory education law, require the Amish to send their children to school beyond the eighth grade when their religion enjoined against it? Could a military dress code prevent a Jewish soldier from wearing a yarmulke? Although the Court did not always rule in favor of religious freedom, it only upheld restrictions on religious freedom where it found a "compelling state interest." (Sherbert v. Verner (1963) 374 U.S. 398; Wisconsin v. Yoder (1972) 406 U.S. 205; Goldman v. Weinberg (1986) 475 U.S. 503.) However, the Smith decision, written by the late Justice Scalia, reversed this trend, holding that the state did not need to show a compelling interest in denying unemployment benefits to two drug counselors who were fired for ingesting peyote as part of a religious ritual. Justice Scalia held that the religiously observant must comply with all "laws of general applicability" and, seemingly at odds with prior case AB 1887 Page 6 law, held that the government did not need to show a compelling state interest so long as the law applied generally and was not animated by hostility to religion. (Justice O'Connor wrote a concurring opinion. She would have continued to require a compelling state interest, but found that in this case enforcing state drug laws was indeed a compelling state interest.) Congress responded to the Smith decision with the federal RFRA. The "restoration" in its title referred to restoration of "strict scrutiny" in Free Exercise cases - that is, a state must show a compelling state interest in order to infringe upon a religious practice, even if that practice would otherwise violate a law of general applicability or disqualify the religiously observant from a state benefit. City of Boerne and the Evolution of State RFRA laws: In 1997, the U.S. Supreme Court held, among other things, that the federal RFRA did not apply to actions of the several states. (City of Boerne v. Flores (1997) 521 U.S. 507.) Several states responded by enacting their own versions of RFRA. While the Smith ruling may have held that the Free Exercise clause of the First Amendment does not require a compelling state interest to compel compliance with laws of general applicability, the state RFRA laws go beyond the First Amendment, offering more protection for religious freedom, as they are entitled to do, than the First Amendment requires. Specifically, these laws provide that no state law, ordinance, or rule shall "substantially burden" a person's exercise of religion - even if the burden results from a rule of general applicability - unless the government can demonstrate that the law, ordinance, or rule is "in furtherance of a compelling government interest" and "is the least restrictive means of furthering that compelling government interest." (See e.g. Indiana SB 101, enacting Section 1.IC 34-13-9 of the Indiana Code.) However, the recent statutes enacted in Indiana and Arkansas go beyond past laws by defining the "person" protected to include, not only an individual or a non-profit religious organization, but to also include "a partnership, a limited liability company, a corporation, a company, a firm, a society, a joint-stock AB 1887 Page 7 company, or an unincorporated association." (Id., Section 7, paragraph 3.) One implication of laws like those in Indiana, therefore, is that a private business could invoke religious reasons in order to refuse service to any person, notwithstanding laws of general applicability that prohibit business establishments from discriminating against people on the basis of certain protected characteristics, including race, gender, disability, or sexual orientation, among others. The genesis of the recent spate of state RFRA legislation has apparently been in response to recent rulings, including most notably by the U.S. Supreme Court, that prohibit states from banning same-sex marriage. Supporters of the state RFRA laws contend that even though the state may not ban same-sex marriage, private businesses should not be required to participate in ways that they find religiously objectionable. Although the favorite example cited by supporters of such laws is the wedding photographer, the language of the Indiana statute is potentially much broader than that, depending upon how a court construes a "substantial burden." Requiring a photographer to not only attend, but play a significant role in, a wedding that he or she finds objectionable might constitute such a burden. Some supporters of the Indiana law contend that other examples, such as a restaurant refusing to serve a gay couple, would not likely satisfy "substantial burden" requirement. However, the exact reach and limits of recent state RFRA laws is necessarily speculative, given that the Indiana law, for example, has only been in effect for about one year. California Anti-Discrimination Laws: Whatever the scope of state RFRA laws, the most recent of them appear contrary to values expressed in California law. California's two most significant anti-discrimination laws - the Unruh Civil Rights Act (Civil Code Section 51) and the California Fair Employment and Housing Act (Government Code Sections 12900-12996) - prohibit discrimination on a number of grounds, including most AB 1887 Page 8 significantly for purposes of this bill, sexual orientation, gender identity, and gender expression. According to the author and sponsors, California has been a leader in protecting the civil rights of, and preventing discrimination against, the LGBT community. California's Unruh Civil Rights Act, for example, prohibits all business establishments "of any kind whatsoever" from discriminating on the basis of sexual orientation, gender identity, and gender expression. The author and sponsors believe it would be inappropriate, given the values expressed in our laws, to allow state funds to support states with discriminatory laws. As a step in this direction, therefore, this bill would prohibit state agencies from requiring employees to travel to states that discriminate against the LGBT community, or to any state that permits such discrimination by private entities. Specifically, this bill does two things. First, this bill would prevent any state agency, department, board, or commission - including those of the University of California and the California State University - from requiring any employee to travel to any state "with a law in effect that sanctions or requires discrimination on the basis of sexual orientation, gender identity, or gender expression." Second, this bill would also prohibit any state agency from approving a request for travel to any such state. While the first provision aims to prevent a state agency from requiring a state employee to travel to an objectionable state, the second provision would prevent a state agency from funding travel where an employee may have voluntarily traveled to an objectionable state for a work-related, but not necessarily required, activity. The latter example would affect, for example, academics that voluntarily travel to another state to present a paper at a conference but are not actually required to attend a conference, let alone attend a conference in that particular state. The academic could, of course, attend this conference; but he or she would not be reimbursed for it. In sum, the purpose of the bill is apparently twofold: (1) to AB 1887 Page 9 prevent compelling an employee to travel to an environment in which he or she may feel uncomfortable; and (2) to prevent the use of state funds to benefit a state that does not adequately protect the civil rights of certain classes of people. The bill exempts from the above restrictions any travel that is necessary for the enforcement of California law, to meet prior contractual obligations, or for the protection of public health, welfare, or safety. Presumably, the last exemption would permit the state, for example, to send first responders in the event of some natural or manmade disaster. Finally, due to the bill's placement in Government Code, the "state agencies" subject to this bill would not include the Legislature, Legislative members, or legislative staff, who presumably could travel to objectionable states at public expense. Other State and Local Actions: Although the Committee is not aware of legislation in other states that has bans on state-funded travel, a number of states and localities have, by executive order, taken such steps. For example, shortly after Governor Pence signed the Indiana law, the Governors of Connecticut, New York, and Washington banned state-funding for travel to Indiana by executive order. Similarly, at about the same time, the mayors of San Francisco and Seattle banned city-funded travel to Indiana. Potential Problems of Scope and Implementation: While the Committee supports the author's intent to prevent the use of state funds to enrich states that tolerate discrimination against the LGBT community, the bill raises considerable questions about its potential scope and practical implementation. Why Limit to Travel? It is not clear to the Committee how often state agencies require state employees to travel to other states as a condition of their employment, or how often boards or commissions require their appointed or elected members to travel AB 1887 Page 10 to other states as part of their prescribed duties. For example, the Committee learned that employees of the Department of Transportation visit other states, including Indiana, that build certain goods that are purchased by the state, including vehicles and material used to build the state's transportation infrastructure. It is not entirely clear whether federal, state, or private money is used to fund these trips. Yet, however funded, this bill would prohibit the Department of Transportation from requiring employees to travel to Indiana and other states with RFRA laws. Presumably the employee could voluntarily to travel to that state, but that employee would not be entitled to reimbursement for travel expenses from the state. This example, however, raises a more fundamental question. If the premise of this bill is that state funds should not be spent in states that deny civil rights, why would the state ban state-funded travel but still spend a presumably much greater amount spent on procuring goods from that same state? How Will a State Agency Determine which States are covered? Although the author's background materials make it clear that the bill is intended to target states with RFRA laws - and NCSL has identified 21 such states - the language of the bill is less precise. The bill instead prohibits state-funded travel to any state "with a law in effect that sanctions or requires discrimination on the basis of sexual orientation, or gender identity, or gender expression." Will the enactment of a RFRA statute be sufficient evidence that the state sanctions or requires discrimination against LGBT persons? Is it possible that a state could lack a RFRA statute but still have other laws (or a lack of laws) that tolerate discrimination? Will the state agency be required to investigate a state's policies beyond the existence or non-existence of a RFRA statute, or will some state authority, such as the Attorney General, be required to maintain an up-to-date list that state agencies, boards, and commissions would consult? Oddly, a literal reading of this bill would allow a state agency to approve travel funds to a state that discriminates on some other basis, such as race, religion, disability, language, marital status, or immigration AB 1887 Page 11 status - all of which are nonetheless protected categories under California law. Must the Objectionable State be the Final Destination? The Committee received an inquiry from a state entity as to whether an employee could fly to an objectionable state even though that state was not the final destination. Specifically, how would this bill affect an employee who must travel to Washington D.C. but who flies to Washington Dulles International Airport, which is in Virginia - a state with a RFRA statute? Would this flight be reimbursable? Would the employee be reimbursed for money spent at the airport, at a Virginia gas station, or at any establishment in Virginia on the way to the District of Columbia? (Incidentally, the District of Columbia, as a federal entity, is subject to the federal RFRA; but since it is not a state, it would not be subject to this bill.) To be sure, these specific issues could be easily resolved, but they illustrate how a seemingly simple restriction might create many practical, and unanticipated, problems of implementation. Is Restricting Travel the Best Way to Facilitate Change? This bill is apparently premised on the assumption that allowing state-funded travel to states with discriminatory laws is somehow a reflection of our state's support for those laws. But is this necessarily the case? For example, suppose a law professor at the University of California presented a paper at the Indiana University Law School, and assume further that the paper advocated for the expansion of LGBT rights. Under this bill that professor could not be reimbursed for his or her travel. One could argue that this is as it should be, as there is no reason to extend to professors funds that are not available to other state employees. And it would be inappropriate, and quite possibly unconstitutional, to condition travel funds on the content of a presentation. But this example illustrates a larger question: Is preventing travel to other states, and the accompanying interactions with the residents of those states, the best way to encourage those states to change AB 1887 Page 12 their laws? Is it possible that creating more opportunities for interaction and the exchange of ideas will be a more effective means of bringing about change than prohibiting those interactions and exchanges? Should this bill pass out of this Committee, the author may wish to consider these issues as the bill moves forward. ARGUMENTS IN SUPPORT: While the author concedes that religious freedom "is a very important value in our state and across the nation," protection of religious freedom should not be a justification for allowing discrimination. Specifically, the author notes the passing and signing of Indiana's Religious Freedom Restoration Act (RFRA). The author notes that the act "received national backlash from LBGTQ and civil liberties groups because the bill allowed individuals or businesses to discriminate based on sexual orientation, gender identity and gender expression." The author writes that: California has one of the strongest civil protection laws in the country, the Fair Employment and Housing Act and the Unruh Civil Rights Act. Our laws do not allow government entities or organizations that offer services to the public to discriminate or treat people differently. As a leader in protecting civil rights and preventing discrimination, California should not be funding states with discriminatory state laws. States with RFRA equivalent laws put LGBTQ individuals at great risk. AB 1887 will ban state-funded travel to states with laws that discriminate on the basis of sexual orientation, gender identity, or gender expression, sending a strong message that such laws are not acceptable to the State of California. The Consumer Attorneys of California (CAOC) argue that recent AB 1887 Page 13 RFRA laws in states like Indiana allow "individuals and businesses to discriminate based on sexual orientation, gender identity, and gender expression." Such laws, CAOC contends, "put LGBTQ individuals at risk." CAOC believes that AB 1887 will send a message that laws such as those enacted in Indiana and elsewhere "are not acceptable to California." REGISTERED SUPPORT / OPPOSITION: Support Equality California (co-sponsor) National Center for Lesbian Rights (co-sponsor) Consumer Attorneys of California Opposition None on file Analysis Prepared by:Thomas Clark / JUD. / (916) 319-2334 AB 1887 Page 14