BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 196
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          ASSEMBLY THIRD READING
          AB 196 (Leno)
          As Amended March 26, 2003
          Majority vote 

           LABOR AND EMPLOYMENT      6-1   APPROPRIATIONS      17-8        
           
           ----------------------------------------------------------------- 
          |Ayes:|Koretz, Mullin, Chu,      |Ayes:|Steinberg, Berg,          |
          |     |Hancock, Laird, Negrete   |     |Calderon, Cohn, Corbett,  |
          |     |McLeod                    |     |Diaz, Firebaugh,          |
          |     |                          |     |Goldberg, Leno, Nation,   |
          |     |                          |     |Negrete McLeod, Nunez,    |
          |     |                          |     |Pavley, Ridley-Thomas,    |
          |     |                          |     |Laird, Wiggins, Yee       |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Houston                   |Nays:|Bates, Correa, Daucher,   |
          |     |                          |     |Haynes, Maldonado,        |
          |     |                          |     |Pacheco, Runner,          |
          |     |                          |     |Samuelian                 |
           ----------------------------------------------------------------- 

           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  :

          1)Prohibits, under FEHA, employment and housing discrimination  
            based upon race, religious creed, color, national origin,  








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            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.

          2)Defines "sex", under FEHA, 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  :  According to the Assembly Appropriations  
          Committee, minor, absorbable enforcement costs to the Department  
          of Fair Employment and Housing, which investigates and  
          adjudicates complaints arising under FEHA. 

           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  
          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  








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          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 United States 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 [C]ode versus the state  
          Government [C]ode."  Opponents, in general, also argue that this  
          bill creates a new basis for lawsuits against business during  
          times of economic uncertainty. 

          A nearly identical bill, AB 1649 (Goldberg) of 2001, died on the  
          Senate inactive file last year. 
           

          Analysis Prepared by  :    Nick Louizos / L. & E. / (916) 319-2091  



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