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SR-8B (18) CA:f:atty\muni\strpts\mjm\pricing city council Meeting 8-2-94 88 AUG 0 2 199't Santa Monica, California TO: Mayor and city council FROM: City Attorney SUBJECT: An Ordinance of the City Council of the City of Santa Monica Prohibiting Discriminatory Pricing of Goods and Services Based Upon A Consumer's Gender INTRODUCTION At its meeting of June 21/ 1994/ the city Council directed the City Attorney to prepare an ordinance which would prohibit suppliers of goods or services from discriminating in pricing based upon a consumer's gender. A proposed ordinance conforming to that directive is attached. ANALYSIS Concern has arisen that some types of businesses charge more for virtually identical goods or services based upon a consumer's gender. For example, such discrimination sometimes occurs in the pricing of dry cleaning and hair cutting services. State law presently imposes a general requirement that business establishments must provide equal services to all and may not discriminate based upon "sex, race, color I religious ancestry I national origin or disability. . . ." civil Code S51. However, state law presently includes no specific prohibition against charging more for goods or services based on gender. Legislation to this AaO IJ effect is proposed but has not yet been adopted. The proposed ordinance is similar to that legislation. RECOMMENDATION It is recommended that the city council adopt the proposed ordinance. PREPARED BY: Marsha Jones Moutrie, City Attorney Kimery A. Shelton, Deputy city Attorney 2 CA:f:\atty\muni\laws\kas\pricing City council Meeting 8-2-94 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PROHIBITING DISCRIMINATORY PRICING OF GOODS AND SERVICES BASED UPON A CONSUMER'S GENDER WHEREAS, existing law of the State of California prohibits a business establishment from discriminating against a person based on the person's gender; WHEREAS, existing law does not specifically provide that a seller of goods or services may not discriminate with respect to the price charged for goods or services based on gender; and WHEREAS, the City desires to adopt an ordinance which will specifically address the existing gender-based discrimination in pricing by some business establishments in the City of Santa Monica; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: 1 SECTION 1. Santa Monica Municipal Code Chapter 4.32 is hereby amended to add a new Section 4.32.170. SECTION 2. section 4.32.170 of the Santa Monica Municipal Code is added to read as follows: section 4.32.170 Equal Pricing Findings and Purpose The City Council finds and declares: (a) That discrimination against women in the pr icing of consumer goods and services exists in the City of Santa Monica. (b) The existence of such discrimination has a disparate impact on women when they are charged more than men for certain goods and services; (c) That the overall effect of such discrimination is that women are harmed economically. SECTION 3. section 4.32.171 is added to the Santa Monica Municipal Code to read as follows: section 4.32.171. Prohibited Activities. No seller of goods or services, including a person who holds a Santa Monica business license under the provisions of this code, may discriminate, with respect to the price 2 charged for goods or services, against a person because of the person's gender. SECTION 4. Section 4.32.172 is added the Santa Monica Municipal Code to read as follows: Section 4.32.172. violation of section 4.32.171 - penalty and enforcement. (a) Any person who shall be convicted of violating the provisions of section 4.32.171 shall be gUllty of a misdemeanor and upon conviction shall be punished by a fine of not greater than Five Hundred Dollars ($500.00) or by imprisonment in the County Jail for not more than six: months, or by both such fine and imprisonment. Each day that a violation of this section occurs shall be considered a separate offense. (b) The City Attorney or any citizen may prosecute a civil action to enforce this Chapter and in any action obtain such legal and equitable relief, including the recovery of actual and punitlve damages and reasonable attorneys fees, as may be imposed as provided by law. 3 SECTION 5. Any provision of the Santa Monica Municipal Code or Appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 6. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The city Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 7. The Mayor shall sign and the city Clerk shall attest to the passage of this Ordinance. The city Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: 7r;tt4~'- ~~~~-ftL.vH~. MARSHA J~ES MOUTRIE City Attorney 4