BILL NUMBER: SB 1241	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 18, 2016
	AMENDED IN SENATE  MARCH 29, 2016

INTRODUCED BY   Senator Wieckowski

                        FEBRUARY 18, 2016

   An act to add Section 1799.208 to the Civil Code,   and to add
Section 925 to the Labor Code,   relating to  consumer
 contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1241, as amended, Wieckowski.  Consumer contracts.
  Contracts. 
   Existing law, the Consumer Contract Awareness Act, defines a
consumer contract as a writing prepared by a seller that provides for
the sale or lease of goods or  services  
services or the extension of credit, as specified,  for
personal, family, or household purposes, among other provisions. The
act  require a seller   requires a seller, which
includes financial institutions,  to deliver a copy of a
consumer contract to the consumer at the time the contract is signed,
and it prohibits the waiver of any provisions of the act.
   This bill  would, in addition, provide  
would provide, for contracts entered into, modified, or extended on
or after January 1, 2017,  that a provision in a consumer
contract that purports to designate the venue in which a controversy
arising from the consumer contract is litigated, or the choice of law
to be applied, is voidable by the consumer, with respect to a
controversy arising in California, if the provision would deprive the
consumer of the protection of California law or require the consumer
to litigate the controversy out of state.  The bill would
prohibit a seller from requiring a consumer to agree to these
voidable provisions as a condition of entering into a contract
regulated by   the act, and would provide that such
provisions, if required, are inoperative and California law applies
in its place. The bill would specify that injunctive relief is
available in this context and that a court may award a plaintiff
reasonable attorney's fees. The bill would include arbitration with
litigation for purposes of these provisions.  
   This bill also would create an analogous set of rights,
prohibitions, and requirements, as described above, in connection
with employment contracts. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1799.208 is added to the Civil Code, to read:
   1799.208.  (a) Notwithstanding any other law, a provision in a
consumer  contract, as defined by subdivision (b) of Section
1799.201,   contract  that purports to designate
the venue in which a controversy arising from the consumer contract
may be litigated, or the choice of law to be applied, is voidable by
the consumer if the provision would do either of the following:
   (1) Deprive the consumer of the protection of California law with
respect to a controversy arising in California.
   (2) Require the consumer to litigate outside of California a claim
arising in California. 
   (b) A seller shall not require a consumer to agree to a provision
as described in subdivision (a) as a condition of entering into a
contract regulated by this title, and if such a provision is
required, it shall be inoperative and California law shall apply in
its place.  
   (c) In addition to injunctive relief and any other remedies
available, a court may award a plaintiff who is enforcing his or her
rights under this section reasonable attorney's fees.  
   (b) 
    (d)  For purposes of this section, litigation includes
arbitration. 
   (e) This section shall apply to a contract entered into, modified,
or extended on or after January 1, 2017. 
  SEC. 2.    Section 925 is added to the  
Labor Code   , to read:  
   925.  (a) Notwithstanding any other law, a provision in an
employment contract that purports to designate the venue in which a
controversy arising from the employment contract may be litigated, or
the choice of law to be applied, is voidable by the employee if the
provision would do either of the following:
   (1) Deprive the employee of the protection of California law with
respect to a controversy arising in California.
   (2) Require the employee to litigate outside of California a claim
arising in California.
   (b) An employer shall not require a person to agree to a provision
as described in subdivision (a) as a condition of entering into an
employment contract, and if such a provision is required, it shall be
inoperative and California law shall apply in its place.
   (c) In addition to injunctive relief and any other remedies
available, a court may award a plaintiff who is enforcing his or her
rights under this section reasonable attorney's fees.
   (d) For purposes of this section, litigation includes arbitration.

   (e) This section shall apply to a contract entered into, modified,
or extended on or after January 1, 2017.