California Senate Bill SB1241 Amended / Bill

 BILL NUMBER: SB 1241AMENDED BILL TEXT AMENDED IN SENATE APRIL 18, 2016 AMENDED IN SENATE MARCH 29, 2016 INTRODUCED BY Senator Wieckowski FEBRUARY 18, 2016 An act to add Section 1799.208 to the Civil Code,  and to add Section 925 to the Labor Code,  relating to  consumer  contracts. LEGISLATIVE COUNSEL'S DIGEST SB 1241, as amended, Wieckowski.  Consumer contracts.   Contracts.  Existing law, the Consumer Contract Awareness Act, defines a consumer contract as a writing prepared by a seller that provides for the sale or lease of goods or  services   services or the extension of credit, as specified,  for personal, family, or household purposes, among other provisions. The act  require a seller   requires a seller, which includes financial institutions,  to deliver a copy of a consumer contract to the consumer at the time the contract is signed, and it prohibits the waiver of any provisions of the act. This bill  would, in addition, provide   would provide, for contracts entered into, modified, or extended on or after January 1, 2017,  that a provision in a consumer contract that purports to designate the venue in which a controversy arising from the consumer contract is litigated, or the choice of law to be applied, is voidable by the consumer, with respect to a controversy arising in California, if the provision would deprive the consumer of the protection of California law or require the consumer to litigate the controversy out of state.  The bill would prohibit a seller from requiring a consumer to agree to these voidable provisions as a condition of entering into a contract regulated by   the act, and would provide that such provisions, if required, are inoperative and California law applies in its place. The bill would specify that injunctive relief is available in this context and that a court may award a plaintiff reasonable attorney's fees. The bill would include arbitration with litigation for purposes of these provisions.   This bill also would create an analogous set of rights, prohibitions, and requirements, as described above, in connection with employment contracts.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1799.208 is added to the Civil Code, to read: 1799.208. (a) Notwithstanding any other law, a provision in a consumer  contract, as defined by subdivision (b) of Section 1799.201,   contract  that purports to designate the venue in which a controversy arising from the consumer contract may be litigated, or the choice of law to be applied, is voidable by the consumer if the provision would do either of the following: (1) Deprive the consumer of the protection of California law with respect to a controversy arising in California. (2) Require the consumer to litigate outside of California a claim arising in California.  (b) A seller shall not require a consumer to agree to a provision as described in subdivision (a) as a condition of entering into a contract regulated by this title, and if such a provision is required, it shall be inoperative and California law shall apply in its place.   (c) In addition to injunctive relief and any other remedies available, a court may award a plaintiff who is enforcing his or her rights under this section reasonable attorney's fees.   (b)   (d)  For purposes of this section, litigation includes arbitration.  (e) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.  SEC. 2.   Section 925 is added to the   Labor Code   , to read:   925. (a) Notwithstanding any other law, a provision in an employment contract that purports to designate the venue in which a controversy arising from the employment contract may be litigated, or the choice of law to be applied, is voidable by the employee if the provision would do either of the following: (1) Deprive the employee of the protection of California law with respect to a controversy arising in California. (2) Require the employee to litigate outside of California a claim arising in California. (b) An employer shall not require a person to agree to a provision as described in subdivision (a) as a condition of entering into an employment contract, and if such a provision is required, it shall be inoperative and California law shall apply in its place. (c) In addition to injunctive relief and any other remedies available, a court may award a plaintiff who is enforcing his or her rights under this section reasonable attorney's fees. (d) For purposes of this section, litigation includes arbitration. (e) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.