BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 899|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 899
          Author:   Hueso (D), et al.
          Amended:  4/19/16  
          Vote:     21 

           SENATE JUDICIARY COMMITTEE:  5-1, 4/12/16
           AYES:  Jackson, Hertzberg, Leno, Monning, Wieckowski
           NOES:  Moorlach
           NO VOTE RECORDED:  Anderson

           SUBJECT:   Gender discrimination


          SOURCE:    Consumer Federation of California


          DIGEST:  This bill extends the Gender Repeal Tax Act's  
          prohibitions against gender-based price discrimination to goods  
          of a substantially similar or like kind, as specified.  This  
          bill clarifies that it does not prohibit price differences based  
          specifically on the labor, materials, tariffs, or other  
          gender-neutral reasons for having increased cost for providing  
          the goods.


          ANALYSIS:  


          Existing law: 


          1)Provides, under the Unruh Civil Rights Act, that all persons  
            in California are free and equal, and regardless of a person's  








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            sex, race, color, religion, ancestry, national origin,  
            disability, medical condition, genetic information, marital  
            status, sexual orientation, citizenship, primary language, or  
            immigration status, everyone is entitled to the full and equal  
            accommodations, advantages, facilities, privileges, or  
            services in all business establishments.


          2)Provides, under the Gender Tax Repeal Act, that no business  
            establishment of any kind whatsoever may discriminate, with  
            respect to the price charged for services of similar or like  
            kind, against a person because of the person's gender.   
            Provides that this does not, however, prohibit price  
            differences based specifically upon the amount of time,  
            difficulty, or cost of providing the services.  


          3)Provides that specified business establishments, including  
            tailors, barbers or hair salons, and dry cleaners, shall  
            clearly and conspicuously disclose to the customer in writing  
            the pricing for each standard service provided, as specified.   
            "Standard services" for these purposes means the 15 most  
            frequently requested services provided by the business.    
            These businesses must also provide customers with a complete  
            written price list upon request and display in a conspicuous  
            place at least one clearly visible sign, as specified.  


          4)Provides that, aside from a specified civil penalty for price  
            list and signage violations, the remedies for a violation of  
            the Gender Tax Repeal Act are the remedies that are generally  
            available for an Unruh Civil Rights Act violation, described  
            below.  Any action under the Gender Tax Repeal Act, however,  
            is independent of any other remedy or procedure that may be  
            available to an aggrieved party. 


          5)Provides, in relevant part, that any person who denies, aids  
            or incites a denial, or makes any discrimination or  
            distinction contrary to the Unruh Civil Rights Act or to the  
            Gender Tax Repeal Act, is liable for each and every offense  
            for the actual damages, and any amount that may be determined  
            by a jury, or a court sitting without a jury, up to a maximum  
            of three times the amount of actual damage but in no case less  







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            than $4,000, and any attorney's fees that may be determined by  
            the court, suffered by any person denied the rights provided  
            in those Acts.  


          This bill: 


          1)Adds to the Gender Tax Repeal Act that no business  
            establishment of any kind whatsoever may discriminate, with  
            respect to the price charged for goods of a substantially  
            similar or like kind, against a person because of the person's  
            gender.


          2)Provides that nothing in the above prohibits price differences  
            based specifically on the labor, materials, tariffs, or other  
            gender-neutral reasons for having increased cost for providing  
            the goods.


          3)Provides that, for these purposes, goods may be of a  
            substantially similar or like kind if the goods do all of the  
            following:


                 Share the same brand; 


                 Share the same functional components; and


                 Share 90% of the same materials or ingredients. 


          1)Provides that "goods" shall not include any food as defined by  
            Section 12502 of the Food and Agricultural Code.


          Background                          


          California law, the Unruh Civil Rights Act, prohibits business  
          establishments from discriminating against any individual on the  







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          basis of certain characteristics such as sex, race, and national  
          origin.   (Civ. Code Sec. 51.)  In 1995, California enacted the  
          "Gender Tax Repeal Act" (AB 1100, Speier, Chapter 866, Statutes  
          of 1995) to specifically prohibit businesses from engaging in  
          price discrimination based on gender with respect to services of  
          a like or similar kind, while also clarifying that this  
          prohibition does not apply to price differentials to be based  
          upon the amount of time, difficulty, or cost of providing the  
          service.  (See Civ. Code Sec. 52.6(b), (c).)  In 2001, AB 1088  
          (Jackson, Chapter 312, Statutes of 2001) added provisions to the  
          Gender Tax Repeal Act that require specified business  
          establishments, such as tailors, hair salons, and dry cleaners,  
          to conspicuously display their prices for each "standard  
          service" (i.e., the 15 most frequently requested services  
          provided by the business) to customers.  AB 1088 also required  
          those businesses to display a sign that states it is illegal to  
          base pricing of services on gender and that a complete price  
          list is available upon request.  


          This bill now amends the Gender Tax Repeal Act to expressly  
          apply its prohibition against gender-based price discrimination  
          to goods. 


          Comments


          As stated by the author: 


            While the Gender Tax Repeal [A]ct [and] the Jesse Unruh Civil  
            Rights [A]ct have provided protections to consumers against  
            gender based pricing on consumer services, there has been no  
            such evidence of the act being used by private individuals to  
            protect against gender pricing on consumer goods. Recent  
            reports have suggested that women often pay more than men for  
            products marketed toward them or made for women. Often times,  
            these products are identical or very similar to men's  
            products. This price difference has been evidenced across our  
            economy from products marketed towards children, adult  
            clothing, hygienic products and senior care products.









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            This bill extends protections against gender pricing for  
            services, as specified under the Gender Tax Repeal Act, to  
            consumer goods [ . . . ] .


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified4/20/16)


          Consumer Federation of California (source)
          Congresswoman Jackie Speier
          American Civil Liberties Union of California
          California Alliance for Retired Americans
          California Immigrant Policy Center
          California National Organization for Women
          California Public Interest Research Group 
          California Rural Legal Assistance Foundation
          Consumers for Auto Reliability and Safety
          Equal Rights Advocates
          Let Toys Be Toys 
          Mujeres Unidas y Activas
          Older Women's League Sacramento Capitol
          Planned Parenthood Affiliates of California
          Santa Barbara Women's Political Action Committee
          UDW/AFSCME Local 3930
          Women's Foundation of California
          two individuals


          OPPOSITION:   (Verified4/20/16)


          California Chamber of Commerce
          California Grocers Association
          California New Car Dealers Association 
          California Retailers Association
          Civil Justice Association of California 
          Consumer Specialty Products Association
          Grocery Manufacturers of America 
          Southwest California Legislative Council
          TechNet







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          Toy Industry Association






          Prepared by:Ronak Daylami / JUD. / (916) 651-4113
          4/20/16 16:06:03


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