BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 196
                                                                  Page A
          Date of Hearing:   March 19, 2003

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                 Paul Koretz, Chair
                   AB 196 (Leno) - As Introduced:  January 27, 2003
           
          SUBJECT  :   Discrimination.

           SUMMARY  :  Expands the definition of sex to include gender,  
          actual or perceived, for purposes of defining unlawful  
          employment discrimination.  Specifically,  this bill  :  

          1)Broadens the scope of sex discrimination prohibited under the  
            Fair Employment and Housing Act (FEHA) to include the  
            employee's gender.  Gender is defined as the employee's actual  
            sex, or the employer's perception of the employee's identity,  
            appearance, or behavior, even if these characteristics differ  
            from those traditionally associated with the employee's sex at  
            birth.

          2)Provides explicitly that it does not affect the ability of  
            employers to adopt reasonable workplace appearance, grooming  
            and dress standards, provided that an employer must allow an  
            employee to appear or dress consistently with the employee's  
            gender.

           EXISTING LAW  prohibits, under FEHA, employment and housing  
          discrimination based upon race, religious creed, color, national  
          origin, ancestry, physical disability, mental disability,  
          medical condition, marital status, sex, or sexual orientation.   
          Employers with four or fewer employees and non-profit religious  
          organizations are generally exempt from the discrimination  
          provisions of FEHA.

          FEHA defines "sex" as including, but not limited to, pregnancy,  
          childbirth, or medical conditions relating to pregnancy or  
          childbirth.  "Sexual orientation" is defined as heterosexuality,  
                 homosexuality, and bisexuality.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   The author states that "Gender-based discrimination  
          in housing and employment is a serious and widespread problem  
          that forces people to be evicted, destroys careers, and prevents  
          employees and businesses from functioning at their highest  









                                                                  AB 196
                                                                  Page B
          levels."

          According to a recent survey by the Transgender Law Center,  
          nearly one in every two respondents had experienced  
          discrimination in employment.  Other figures from the survey  
          reveal that 64% of respondents make less than $25,000 a year and  
          a full 79% of respondents make less than $50,000.  Additionally,  
          43% lack health insurance and almost 20% do not have stable  
          housing. 

          A 1999 study by the San Francisco Department of Public Health  
          states that most transgender people have experienced various  
          types of employment discrimination and are disproportionately  
          driven into poverty.  The study further reveals that the  
          unemployment rate for transgender people in San Francisco is  
          70%. 

          This bill is intended to offer protection to transgender  
          individuals.  It would also benefit any person who does not  
          possess traits or project conduct stereotypically associated  
          with his or her sex.  These traits may include a person's  
          personality, clothing, hairstyle, speech, mannerisms, or  
          demeanor.  They may also include secondary sex characteristics  
          such as vocal pitch, facial hair, 
          or the size or shape of a person's body.  For example, this bill  
          would protect a female employee from being told that she must  
          dress in a more "feminine" manner and a man from gender-based  
          harassment on the job because he has a soft voice or a slight  
          build.
           
          Supporters point to two U.S. Supreme Court decisions  
          interpreting federal Title VII anti-discrimination prohibitions  
          as including discrimination based on sex-role stereotyping, and  
          urge that California follow this lead in FEHA.  Doing so would  
          provide a clear standard, avoiding inconsistent case-by-case  
          results in individual courts.

          Opponents raise several points, including that the bill, which  
          uses the definition of gender in the hate-crimes portion of the  
          Penal Code, is unclear as to precisely what conduct would  
          constitute unlawful discrimination.  The Chamber of Commerce  
          believes that "using a criminal definition designed for the  
          prosecution of hate crimes is inappropriate due to the differing  
          thresholds of evidence in the Penal code versus the state  
          Government code."  Opponents, in general, also argue that this  









                                                                  AB 196
                                                                  Page C
          bill creates a new basis for lawsuits against business during  
          times of economic uncertainty. 

          A nearly identical bill, AB 1649 (Goldberg), was passed in the  
          Assembly, but died on the Senate inactive file last year.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Alice B. Toklas LGBT Democratic Club
          American Civil Liberties Union (ACLU)
          American Federation of State, County and Municipal Employees  
          Association (AFSCME)
          Billy DeFrank LGBT Community Center
          California Apartment Association
          California Labor Federation
          California National Organization for Women
          California School Employees Association
          California State Employees Association
          California Women's Law Center
          Charles Zukow Associates
          Chinese for Affirmative Actions
          Commission on the Status of Women
          Donordigital Online Marketing
          East Bay Community Law Center
          Eleanor Roosevelt Democratic Club of Orange County
          Eviction Defense Collaborative
          Gay-Straight Alliance Network
          Golden Gate Business Association
          Golden Gate University Women's Employment Rights Center
          Greater San Diego Business Association
          Harvey Milk Lesbian Gay Bisexual Transgender Democratic Club
          Housing Rights Committee, San Francisco
          Human Rights Campaign
          Human Rights/Fair Housing Commission of Sacramento
          Lambda Legal
          Lambda Letters Project
          Los Angeles Gay and Lesbian Center
          Mossinger Consulting
          National Association of Social Workers
          National Center for Lesbian Rights
          National Gay and Lesbian Task Force
          National Transgender Advocacy Coalition
          Orange County Transgender Task Force









                                                                  AB 196
                                                                  Page D
          Parents and Friends of Lesbians and Gays, Encino
          SAF-T Corporation
          San Francisco Tenants Union
          Senior Housing Action Collaborative
          Service Employees International Union (SEIU)
          Spectrum Magazine
          Stonewall Democratic Club of Sacramento
          The California Alliance for Pride and Equality (CAPE)
          The Center, San Diego
          Transgender Law Center
          Woodenship Strategic Communications Company

           Opposition 
           
          California Chamber of Commerce
          California Employment Law Council
          California Manufacturers & Technology Association
          Campaign for California Families
          Committee on Moral Concerns
          Irvine Chamber of Commerce
           
          Analysis Prepared by  :    Nick Louizos / L. & E. / (916) 319-2091