BILL NUMBER: SB 1241	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 20, 2016
	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 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,   prohibit, 
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.   a seller from
requiring a consumer, as a condition of entering into a contract, to
agree to a provision that would require the consumer to adjudicate
outside of California a claim arising in California or deprive the
consumer of the protectio   n of California law with respect
to a controversy   arising in California. The bill would
make any choice of venue or choice of law provision voidable, upon
request of the consumer, if the provision would violate either of
those prohibitions as provided.  The bill would specify
that   make  injunctive relief  is
 available  in this context and that a court may
  and would authorize a court to  award a 
plaintiff   consumer  reasonable attorney's fees.
The bill would  include arbitration with litigation 
 provide that adjudication includes litigation and arbitration
 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 
employment  provisions a contract 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) A seller shall not require a consumer, as a
condition of entering into a contract, to agree to a provision that
would do either of the following:
   (1) Require the consumer to adjudicate outside of California a
claim arising in California.
   (2) Deprive the consumer of the protection of California law with
respect to a controversy arising in California.
   (b) Any choice of venue or choice of law provision is voidable,
upon request of the consumer, if the provision would do either of the
following:
   (1) Require the consumer to adjudicate outside of California a
claim arising in California.
   (2) Deprive the consumer of the protection of California law with
respect to a controversy arising in California.
   (c) If a provision is rendered void at the request of the
consumer, as described in subdivision (b), the matter shall be
adjudicated in California and California law shall govern the
dispute.
   (d) In addition to injunctive relief and any other remedies
available, a court may award a consumer who is enforcing his or her
rights under this section reasonable attorney's fees.
   (e) For purposes of this section, adjudication includes litigation
and arbitration.
   (f) 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) An employer shall not require an employee or job
applicant, as a condition of employment, to agree to a provision that
would do either of the following:
   (1) Require the employee to adjudicate outside of California a
claim arising in California.
   (2) Deprive the employee of the protection of California law with
respect to a controversy arising in California.
   (b) Any choice of venue or choice of law provision is voidable,
upon request of the employee, if the provision would do either of the
following:
   (1) Require the employee to adjudicate outside of California a
claim arising in California.
   (2) Deprive the employee of the protection of California law with
respect to a controversy arising in California.
   (c) If a provision is rendered void at the request of the
employee, as described in subdivision (b), the matter shall be
adjudicated in California and California law shall govern the
dispute.
   (d) In addition to injunctive relief and any other remedies
available, a court may award an employee who is enforcing his or her
rights under this section reasonable attorney's fees.
   (e) For purposes of this section, adjudication includes litigation
and arbitration.
   (f) This section shall not apply to a contract with an employee
who is in fact individually represented by legal counsel in
negotiating the terms of an agreement to designate either the venue
or forum in which a controversy arising from the employment contract
may be adjudicated or the choice of law to be applied.
   (g) This section shall apply to a contract entered into, modified,
or extended on or after January 1, 2017.  
  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.
   (f) This section shall apply to a contract entered into, modified,
or extended on or after January 1, 2017.