BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1252
                                                                  Page  1


          SENATE THIRD READING
          SB 1252 (Corbett)
          As Amended May 19, 2010
          Majority vote 

           SENATE VOTE  :22-8  
           
           JUDICIARY           7-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Feuer, Brownley, Evans,   |Ayes:|Fuentes, Bradford,        |
          |     |Huffman, Jones, Monning,  |     |Charles Calderon, Coto,   |
          |     |Saldana                   |     |Davis, De Leon, Gatto,    |
          |     |                          |     |Hall, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Hagman, Knight            |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
           ----------------------------------------------------------------- 

           SUMMARY  :  Makes miscellaneous technical and conforming changes  
          to housing discrimination law.  Specifically,  this bill  :

          1)Clarifies that admission preferences based on age, imposed in  
            connection with a federally-approved housing program, do not  
            constitute age discrimination in housing.

          2)Makes technical revisions to cross reference "source of  
            income" where it already is among the list of classes  
            protected for the purpose of clarity and consistency.

          3)Increases the maximum civil penalties that may be assessed for  
            a violation of the FEHA to $16,000, $37,500, and $65,000 for a  
            person's first, second, and third violations, respectively.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          analysis, any costs to the Department of Fair Employment and  
          Housing (DFEH), which enforces the FEHA and other civil rights  
          laws, would be minor and absorbable. 
           
          COMMENTS  :  This bill is sponsored by the Department of Fair  
          Employment and Housing (DFEH), the state agency responsible for  
          enforcing the FEHA and other civil rights laws.  The FEHA  








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          prohibits employment and housing discrimination based on the  
          protected classes of race, color, religion, sex, sexual  
          orientation, marital status, national origin, ancestry, familial  
          status, source of income, or disability.  The FEHA further  
          provides that it is a civil right to be able to pursue and  
          maintain housing or employment without facing discrimination.  

          According to a work-sharing agreement between the DFEH and the  
          U.S. Department of Housing and Urban Development (HUD), the FEHA  
          must remain substantially similar to the Fair Housing Amendments  
          Act (FHAA) in order for the DFEH to receive complaint referrals  
          and funding from HUD.  According to the DFEH, for the current  
          contract period the DFEH anticipates receiving over $3 million  
          dollars from HUD, which it believes could be at risk if this  
          bill is not enacted.  

          The FEHA declares that it is unlawful to discriminate on the  
          basis of race, sex, sexual orientation, marital status, national  
          origin, ancestry, familial status, source of income, and  
          disability.  

          In 1999, housing discrimination on the basis of a person's  
          "source of income" was added to the statute.  However, the list  
          of protected characteristics in related FEHA housing provisions  
          was not similarly amended.  SB 1252 would address that  
          inconsistency by adding "source of income" to the list of  
          protected classes in Government Code Sections 12920, 12921 and  
          12955.8.  This change is technical and non-substantive in  
          nature, and the author has added intent language to underscore  
          that point.  Nevertheless, two groups have filed opposition  
          seeking to have that intent language codified, as discussed  
          below. 

          State law provides that if a person is found to have engaged in  
          unlawful discriminatory practices, a civil penalty may be  
          assessed.  Currently, the FEHA states that a civil penalty of up  
          to $10,000 may be assessed against a violator for a first time  
          offense.  If it is the second violation in five years, a maximum  
          civil penalty may be imposed of $25,000.  If it is the third  
          violation in seven years, a maximum civil penalty of $50,000 may  
          be imposed.  Similar caps under federal law have recently  
          increased to $16,000, $37,500, and $65,000, for a person's  
          first, second, and third violations, respectively.  This bill  
          would keep the FEHA substantially equal to the FHAA by  








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          conforming the FEHA caps to federal law.  

          The FEHA prohibits housing discrimination based on age, with the  
          exception of housing accommodations specifically designed for  
          senior citizens.   However, FHAA does not expressly prohibit age  
          discrimination in housing.  Instead, the FHAA prohibits the  
          refusal to sell or rent "?a dwelling to any person because of  
          race, color, religion, sex, familial status, or national  
          origin."  This discrepancy becomes problematic because some  
          federal housing programs have renter eligibility criteria  
          requiring that at least one member of the household be 62 years  
          old or older.  Other members of the household may be any age,  
          and the provider may not refuse to rent to a family with minor  
          children, as long as one household member is at least 62.  This  
          type of requirement violates California law, which only provides  
          an exemption for senior housing accommodations to make housing  
          selections based on a minimum age requirement.  Therefore, a  
          failure to comply with the federal regulation will result in a  
          loss of funding for housing providers, but compliance with the  
          federal regulation will result in violation of state law and a  
          potential DFEH complaint.   

          SB 1252 would clarify that admission preferences based on age,  
          imposed in connection with a federally-approved housing program,  
          do not constitute age discrimination in housing.  This  
          clarification would allow for both FHAA and FEHA to operate  
          without conflict.  


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334 



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