BILL NUMBER: SB 1241	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 14, 2016
	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 contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1241, as amended, Wieckowski. Contracts.
   Existing law, the Consumer Contract Awareness  Act,
  Act of 1990,  defines a consumer contract as a
writing prepared by a seller that provides for the sale or lease of
goods or services or the extension of credit, as specified, for
personal, family, or household purposes, among other provisions. The
act 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 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.  The bill would except from these
provisions a con   tract with an employee who is represented
by legal counsel, as specified. 
   Vote: majority. Appropriation: no. Fiscal committee: 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 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.
   (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 not apply to a contract with an employee
who is individually represented by legal counsel in negotiating the
terms of an agreement to designate the venue in which a controversy
arising from the employment contract may be litigated or the choice
of law to be applied.  
   (e) 
    (f)  This section shall apply to a contract entered
into, modified, or extended on or after January 1, 2017.