BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 899| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 899 Page 2 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 SB 899 Page 3 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 SB 899 Page 4 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. SB 899 Page 5 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 SB 899 Page 6 Toy Industry Association Prepared by:Ronak Daylami / JUD. / (916) 651-4113 4/20/16 16:06:03 **** END ****