BILL ANALYSIS
SB 367
Page 1
SENATE THIRD READING
SB 367 (Negrete McLeod)
As Amended July 15, 2009
Majority vote
SENATE VOTE :Vote not relevant
JUDICIARY 10-0
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|Ayes:|Feuer, Tran, Brownley, | | |
| |Evans, Chesbro, Knight, | | |
| |De La Torre, Lieu, | | |
| |Monning, Niello | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Clarifies discrimination laws regarding consumer
discounts. Specifically, this bill makes clear that the Unruh
Civil Rights Act does not impose liability when a business
offers or confers a discount or other benefit to a consumer or
prospective consumer because the consumer has suffered the loss
or reduction of employment or reduction of wages.
FISCAL EFFECT : None
COMMENTS : The author explains the reason for the bill as
follows: "In the current unprecedented economic climate, many
individuals are seeing reductions in pay or loss of employment.
Some private businesses have generously offered these
individuals discounts for services. It has come to my attention
that some of these businesses have been threatened with legal
action under the Unruh Civil Rights Act. This is not the type
of discrimination that the legislature intended the Act to
protect against. SB 367 would clarify that offering discounts
or benefits to individuals that have seen a reduction or
elimination of employment are not considered arbitrary
discrimination under the Unruh Civil Rights Act."
According to press accounts, a number of businesses,
particularly in the Sacramento region, have offered free food,
cheap ski lift tickets and other discounts to furloughed
workers. "The West Sacramento Ikea, for instance, served free
breakfasts to furloughed California employees on specified
SB 367
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Fridays. At least one ski resort offered discounted lift
tickets to workers who showed state IDs. Several carmakers
nationwide have advertised plans to aid customers who lose their
jobs." (The Recorder, "Unruh Update Would Target Furlough
Deals," July 8, 2009.) Reportedly some of these businesses have
been threatened with suit. This bill would clarify that a
discount or other privilege or advantage benefiting a consumer
who has suffered the loss or reduction of employment or
reduction of wages is not arbitrary discrimination in violation
of the Unruh Act, regardless of whether the recipients were
private or public sector workers.
The California Chamber of Commerce supports the bill to protect
businesses from meritless lawsuits, allowing them to continue
offering discounts and other incentives to consumers negatively
affected by these challenging economic times without the fear of
litigation.
"We believe it is imperative that these businesses are protected
from unwarranted lawsuits brought by lawyers inappropriately
seeking to benefit from the generosity and compassion of
businesses in this economic downturn. This bill will simply
clarify current law, establishing that it is not a violation of
the Unruh Civil Rights Act when a business provides discounts to
people who have suffered a loss or reduction in employment."
The California Retailers Association (CRA) also supports SB 367,
stating that it "seeks to clarify current law regarding
retailers' ability to offer discounts and specials (i.e.
Furlough Friday specials) to customers who have experienced a
loss or reduction in employment. Current law prohibits
discrimination based on a number of factors and SB 367 states
that discounts or promotions offered to those customers do not
constitute discrimination. Given the tough economic climate,
California retailers are looking for new ways to provide
customers with discounts and incentives and this legislation is
needed to protect them from the threat of frivolous and costly
litigation."
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0002184
SB 367
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