BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                  AB 1001|
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                       THIRD READING
                              

Bill No:  AB 1001
Author:   Villaraigosa (D), et al
Amended:  9/3/99 in Senate
Vote:     21

  
  SENATE JUDICIARY COMMITTEE  :  5-3, 8/17/99
AYES:  Burton, Escutia, O'Connell, Sher, Schiff
NOES:  Haynes, Morrow, Wright
NOT VOTING:  Peace

  SENATE APPROPRIATIONS COMMITTEE  :  8-4, 9/1/99
AYES:  Johnston, Alpert, Bowen, Burton, Escutia, Karnette,  
  Perata, Vasconcellos
NOES:  Kelley, Leslie, McPherson, Mountjoy
NOT VOTING:  Johnson

  ASSEMBLY FLOOR  :  42-36, 6/3/99 - See last page for vote
 

  SUBJECT :    Fair Employment and Housing Act:  sexual  
orientation

  SOURCE  :     Author

 
  DIGEST  :   This bill moves the provisions prohibiting  
employment discrimination on the basis of sexual  
orientation from the Labor Code to the Fair Employment and  
Housing Act (FEHA).   The bill also codifies case law which  
prohibits housing discrimination on the basis of sexual  
orientation.

  ANALYSIS  :   Existing law:
                                                 CONTINUED





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1. Prohibits employment discrimination based on actual or  
   perceived sexual orientation under the Labor Code.

2. Prohibits through the Unruh Civil Rights Act, housing  
   discrimination based on sexual orientation,  Hubert v.  
   Williams   (1982) 133 Cal.App.3 Supp.1.  Department of  
   Fair Housing and Employment (DFEH) investigates  
   complaints arising under this section under the rules  
   relating to housing.

This bill would:

1. Amend the Fair Employment and Housing Act (FEHA) to  
   include sexual orientation as a protected category  
   against discrimination.

2. Define "sexual orientation" as "heterosexuality,  
   homosexuality, and bisexuality."

3. Delete the prohibition on employment discrimination  
   based on sexual orientation from the Labor Code.

The bill provides that nothing in this bill is intended to  
alter the definition of employer with regard to any bona  
fide scouting organization covered under Section 1102.1 of  
the Labor Code as it read on December 1, 1999.

This bill is double-jointed with AB 1670 (Assembly  
Judiciary Committee), SB 1185 (Johnston), and SB 1098  
(Burton).

Labor Code Section 1102.1 prohibits employment  
discrimination based on actual or perceived sexual  
orientation.  Employers with five or fewer employees and  
all non-profit organizations are exempt.  The Department of  
Industrial Relations, Division of Labor Standards  
Enforcement investigates complaints arising under this  
section or complaints can be filed as a civil action in  
court.  Claims must be filed within 30 days of the alleged  
incident.  Remedies available include cease and desist  
orders, reinstatement, backpay and attorney's fees.

The Department of Fair Employment and Housing (DFEH)  







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investigates and adjudicates complaints arising under the  
Fair Employment and Housing Act (FEHA).  Complaints must be  
filed within one year of the alleged incident. Remedies  
available for employment discrimination include cease and  
desist orders, reinstatement, actual damages up to $50,000,  
affirmative or prospective relief, and an administrative  
fine.  If a complainant or respondent is not satisfied with  
the administrative decision, or if DFEH issues the  
complainant a  "right-to-sue" letter, the complainant can  
bring a civil action in court.  The complainant cannot file  
a civil action without first exhausting FEHA's  
administrative remedies.  (See Comment 3 for further  
comparison of Labor Code and FEHA remedies.

  Prior legislation  :

AB 257 (Villaraigosa) passed the Senate Floor 22-18,  
9/10/98 and was substantially similar to AB 1001.  AB 257  
would also have moved the provisions prohibiting employment  
discrimination on the basis of sexual orientation from the  
Labor Code to the Fair Employment and Housing Act (FEHA).   
Then-Governor Wilson vetoed the bill saying:  "I signed AB  
2601, (Friedman, Ch. 15, Stats. of 1992).  That measure  
enacted the Labor Code provision which this bill repeals.   
AB 2601 was a carefully crafted measure which provided the  
necessary resolution for employment related discrimination  
based on sexual or perceived sexual orientation.   
Discrimination in housing on the grounds of sexual  
orientation is already prohibited in California under the  
Unruh Act and enforced by the Department of Fair Employment  
and Housing or in Civil Court.  Since adequate protections  
already exist for those who suffer discrimination in  
housing and the workplace on the basis of sexual  
orientation, this bill is unnecessary."

  FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
Local:  No

                Fiscal Impact (in thousands)

  Major Provisions           1999-2000           2000-01           
  2000-02           Fund
  
Enforcement                    $200                 $400     







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4

          $400         General

  SUPPORT  :   (Verified  per Senate Judiciary Committee  
8/17/99) (Unable to reverify at time of writing)

AIDS Healthcare Foundation
AIDS Project East Bay
AIDS Project Los Angeles
Alameda County Board of Supervisors
Alameda Democratic Club
Alice B. Toklas Lesbian & Gay Democratic Club
American Association for Single People
American Civil Liberties Union
Asian Pacific Gays and Friends
California Alliance for Pride and Equality
California Apartment Association
California Conference Board of the Amalgamated Transit  
       Union
California Conference of Machinists
California Labor Federation, AFL-CIO
California National Organization for Women
California Nurses Association
California Rural Legal Assistance Foundation
California Teachers Association
Central California Alliance
City of Berkeley Rent Stabilization Board
City of Santa Monica Rent Control Board
Consumer Attorneys of California
East Bay Municipal Utility District
Elections Committee of the County of Orange
Engineers and Scientists of California
Fair Employment and Housing Commission
Friends Committee on Legislation
Gay & Lesbian Assoc. of Retired Persons
Gay & Lesbian Community Center of Ventura
Hotel Employees, Restaurant Employees International Union
Human Rights Commission, City and County of San Francisco
Jewish Federation of Greater Los Angeles
Lambda Community Fund
Lesbian and Gay Bar Association
Los Angeles Chapter of PFLAG
Los Angeles Gay and Lesbian Center
National Center for Lesbian Rights
National Organization For Women







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Office & Professional Employees, Local #3, AFL-CIO
Pride at Work , National Organization for LGBT Labor
Public Law Center
Reform Party
Region 8 States Council of the United Food & Commercial  
       Workers
Santa Barbara Stonewall Democratic Club
San Jose/Peninsula Chapter of PFLAG
South Orange County Chapter of PFLAG
Southern California Women for Understanding
Ventura County Chapter of PFLAG
Western Center on Law and Poverty, Inc.
Wildcat International
Women Lawyers Association of Los Angeles
Attorney Carol Anderson
Attorney Michael Fiumara
Attorney Margo Dockendorf
Cliff Anchor, Past Commander, Am Legion Post #448 SF
James Mangia - Nat. Secretary, Reform Party of America
John Klehs, Chair, State Board of Equalization
Author Patricia Nell Warren
Alan L. Zimmerman, Regional Director, Reg. 13, CA  
       Democratic Party
California Church Impact
Reverend James C. Lovette-Black
Reverend Canon Craig B. Chapman, All Saints
Reverend Lawrence A. Reh, First Light Ministries
Father Thomas M. Nylund
Numerous individuals

  OPPOSITION  :    (Verified  per Senate Judiciary Committee  
8/17/99) (Unable to reverify at time of writing))

Committee on Moral Concerns
Seventh-Day Adventist Church Council
Numerous individuals

  ARGUMENTS IN SUPPORT  :   Supporters argue that the  
differences between the Labor Code and FEHA result in  
unequal protection against employment discrimination for  
gay, lesbian, and bisexual individuals.  The differences  
they cite include the fact that all nonprofit organizations  
are exempted from Labor Code Section 1102.1 and only  
nonprofit religious organizations are exempted from FEHA.   







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6

Also, there is the 30-day (Labor Code) versus one-year  
(FEHA) difference in the statutory period to file  
discrimination claims.  Supporters argue that 30 days is  
too short a time in which to identify and act on  
discrimination, especially since the complainant may not  
immediately realize that discrimination has occurred.   
Also, in the case of ongoing violations, the 30-day  
deadline may mean that some violations cannot be considered  
as part of an overall case.

Supporters also point to the extensive case law and  
established discrimination investigation guidelines for  
FEHA whereas, they claim, little such history exists  
interpreting Labor Code Section 1102.1.  Also DFEH  
investigators are extensively trained in discrimination  
cases while Department of Industrial Relations (DIR)  
investigators, on the other hand, primarily handle  
whistleblowing cases, wage disputes, and health and safety  
complaints.  As a result they are ill suited to handle this  
type of claim, they say.  In addition, supporters state  
that employees and attorneys are not as aware of the Labor  
Code as they are of FEHA.  For example, because it is not  
included in FEHA, sexual orientation is not listed as a  
protected category on the posters which employers are  
required to post in workplaces advising employees of their  
rights.

Supporters also believe that, by eliminating the dual  
anti-discrimination statutes, this bill will prove less  
onerous to employers who might be confused by the different  
requirements contained in current law.  The bill will also  
reduce confusion for employees subject to more than one  
form of discrimination, e.g. sexual orientation and race.   
Currently, these employees must file separate complaints  
with DIR and DFEH, subject to different deadlines,  
procedures, and remedies.

In response to concerns about increased litigation if this  
bill passes, supporters point out that FEHA is designed to  
decrease litigation by requiring that DFEH investigate all  
complaints before a complainant can file a court action.   
Due to this requirement, it is actually easier for an  
employee to file a civil action under current law than  
under FEHA.  Regardless of the ultimate impact of the bill  







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7

on litigation, however, small businesses and religious  
organizations will not be affected because neither the  
Labor Code nor FEHA applies to small businesses or  
religious organizations.

Finally, supporters say this is a matter of equity.  It is  
unfair to single out a group of people for different  
treatment in employment protection on the basis of conduct  
which has nothing to do with work.  If sexual orientation  
is a sufficient basis to discriminate against a person, it  
is a sufficient basis to prohibit discrimination.  This  
bill, they say, offers no special treatment; it merely  
provides a remedy against illegal employment practices.

  ARGUMENTS IN OPPOSITION  :   There are many letters from  
individuals who oppose the bill based upon asserted  
religious objections.  One writer typifies the objection  
when he states, "Our nation, state, country and community  
are being assaulted by those who want their identity to be  
this chosen behavior and to have it considered on par with  
race, ethnicity, gender or alienage for minority status  
privileges.  They have the freedom to behave as they  
choose, but they do not have the right to inhibit the  
freedoms of others who consider such behavior immoral."    

The Committee on Moral Concerns adds that, "Everyone is  
entitled to equal protection under the law.  However, gays,  
lesbians, and bisexuals should not be granted more than  
equal protection?There is no need for this bill.  Gays and  
lesbians are not suffering from unemployment and poverty,  
and they never have suffered the way other minorities have.  
 There are no gay ghettos, and there never have been." 

The Seventh-Day Adventist Church State Council opposes the  
bill, not because of what the bill would do, but out of a  
fear of future changes to the law.  "As Christians, we  
believe that all should be treated with kindness and  
respect.  Indeed, our faith condemns the hostility shown to  
gays by some of those who oppose gay rights.  However, we  
are compelled to oppose AB 1001 because (it) poses a grave  
threat to religious freedom?No doubt you will recall that  
during the last session, AB 310 was proposed with a  
provision to eliminate FEHA's religious employer exemption.  
 Further legislative efforts to remove the religious  







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employer exemption are expected."

  ASSEMBLY FLOOR  :
AYES:  Alquist, Aroner, Bock, Calderon, Cedillo, Corbett,  
  Correa, Davis, Ducheny, Dutra, Firebaugh, Floyd,  
  Gallegos, Hertzberg, Honda, Jackson, Keeley, Knox, Kuehl,  
  Lempert, Longville, Lowenthal, Machado, Mazzoni, Migden,  
  Nakano, Papan, Romero, Scott, Shelley, Soto, Steinberg,  
  Strom-Martin, Thomson, Torlakson, Vincent, Wayne, Wesson,  
  Wiggins, Wildman, Wright, Villaraigosa
NOES:  Aanestad, Ackerman, Ashburn, Baldwin, Bates, Battin,  
  Baugh, Brewer, Briggs, Campbell, Cox, Cunneen, Dickerson,  
  Florez, Frusetta, Granlund, Havice, House, Kaloogian,  
  Leach, Leonard, Maddox, Maldonado, Margett, McClintock,  
  Olberg, Oller, Robert Pacheco, Rod Pacheco, Pescetti,  
  Reyes, Runner, Strickland, Thompson, Washington, Zettel
NOT VOTING:  Cardenas, Cardoza


RJG:jk  9/5/99   Senate Floor Analyses 

               SUPPORT/OPPOSITION:  SEE ABOVE

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