BILL NUMBER: SB 1241	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 19, 2016
	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 prohibit, for contracts entered into, modified, or
extended on or after January 1, 2017, 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 protection 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,   a consumer who primarily resides in
California,  if the provision would violate either of those
prohibitions as provided. The bill would make injunctive relief
available and would authorize a court to award a consumer reasonable
attorney's fees. The bill would 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.   contracts for an
employee who primarily resides and works in California.  The
bill would except from these employment provisions a contract with an
employee who is represented by legal counsel, as  specified.
  specified, or a talent agency, as defined. 
   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   Notwithstanding any other law, any
 choice of venue or choice of law provision is voidable, upon
request of  the consumer,   a consumer who
primarily resides in California,  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   Notwithstanding any other law, any
 choice of venue or choice of law provision is voidable, upon
request of  the employee,   an employee who
primarily resides and works in California,  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 not apply to a contract for which the
employee was represented by a talent agency, as defined in
subdivision (a) of Section 1700.4.  
   (g) 
    (h)  This section shall apply to a contract entered
into, modified, or extended on or after January 1, 2017.