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Final Statement of Reasons for Regulations Regarding Transgender Identity and Expression Page 1 of 27

FAIREMPLOYMENTANDHOUSINGCOUNCILREGULATIONSREGARDINGTRANSGENDERIDENTITYANDEXPRESSIONFINALSTATEMENTOFREASONSCALIFORNIACODEOFREGULATIONSTitle2.AdministrationDiv.4.1.DepartmentofFairEmployment&HousingChapter5.FairEmployment&HousingCouncilSubchapter2.DiscriminationinEmploymentArticle5.SexDiscriminationUPDATEDINFORMATIVEDIGEST[GovernmentCodeSection11346.9(b)].Thisrulemakingactionimplements,interprets,andmakesspecifictheemploymentprovisionsoftheFairEmploymentandHousingAct(FEHA)assetforthinGovernmentCodesection12900etseq.FEHAprohibitsharassmentanddiscriminationbecauseoftherace,religiouscreed,color,nationalorigin,ancestry,physicaldisability,mentaldisability,medicalcondition,geneticinformation,maritalstatus,sex,gender,genderidentity,genderexpression,age,sexualorientation,andmilitaryandveteranstatusofanyperson.Accordingly,FEHArequiresthatemployersrefrainfromdiscriminationagainsttransgenderorgendernonconformingindividualsinworkingconditions;facilitiesusage;dressandgroomingstandards;formsofaddressandgenderpronounusage;anduseofanindividualslegalnameand/orgender.TheCouncilhasdeterminedthattheproposedamendmentsarenotinconsistentorincompatiblewithexistingregulations.Afterconductingareviewforanyregulationsthatwouldrelatetooraffectthisarea,theCouncilhasconcludedthatthesearetheonlyregulationsthatconcerntheFairEmploymentandHousingAct.TheCouncilheardpubliccommentontheoriginallyproposedtextatapublichearinginLosAngelesonJune27,2016.TheCouncilfurthersolicitedpubliccommentonfourmodifiedtextsatfoursubsequentmeetings:August31,2016,inSanFrancisco;November15,2016,inSanFrancisco;January10,2017,inLosAngeles;andMarch30,2017,inSacramento.ThefollowinglistsummarizestheCouncilsnotableamendmentstotheoriginallyproposedtext:makingclearthateachpersonhasagenderidentity;statingthatabonafideoccupationalqualificationdefensewillnotbejustifiedbythemerefactthatanindividualistransgenderorgendernonconforming,orthatthesexassignedatbirthisdifferentfromthesexrequiredforthejob;clarifyingthatemployersshouldprovidefeasiblealternativefacilitiestorespecttheprivacyinterestsofallemployees,ratherthantobalanceinterestsasinitiallystated;restructuringsection11304(i)oftheregulationsforclarity;andmakingclearthatsections11016(b)(1)and11032(b)(2)oftheFEHAsregulationsalreadyprecludeinquiriesthatdirectlyorindirectlyidentifyanindividualonthebasisofsex,includinggender,genderidentity,orgenderexpression,unlesstheemployerestablishesapermissibledefense.

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Finally,thefollowinglistsummarizestheCouncilsnotablenonsubstantiverevisionsmadetothetextfollowingthethird15daypubliccommentperiod:strikingthedefinitionoffacilitybecausethecommonlyunderstoodmeaningoffacilityasdefinedinthedictionarysufficientlycapturesthemeaningoftheterm(thisalsoresultedintherenumberingofsubdivisionswithinsection11030);insection11034(g),includinganinternalcrossreferencetotheexistingdefinitionofbusinessnecessityanddeletinganddoesnotdiscriminatetoalignwiththedefinitionofbusinessnecessity;insection11034(h),includinganinternalcrossreferencetotheexistingdefinitionofpermissibledefense;insection11034(h)(1),includinganinternalcrossreferencetotheexistingdefinitionofpermissibledefense;insection11034(h)(2),removinganerroneouscrossreferencethatwasincludedinerror;andinthenoteofsection11034,removingreferencetotheLusardicaseperGovernmentCodesection11349(e)becauseitisnotbindingonCalifornia(however,referencestothecasearestillcontainedwithintherulemakingfileandillustratetheCouncilsintenttoalignitsregulationswiththeEEOCsrecentdecision).DETERMINATIONOFLOCALMANDATE[GovernmentCodeSection11346.9(a)(2)].Theproposedregulationsdonotimposeanymandateonlocalagenciesorschooldistricts.ALTERNATIVESCONSIDERED[GovernmentCodeSection11346.9(a)(4)].TheCouncilconsideredvariousalternativestotheseregulationsbaseduponcommentsitreceivedafternoticingtherulemakingaction;nospecificalternativeswereconsideredpriortoissuanceoftheoriginalnotice.TheCouncilhashereinlistedallalternativesithasconsideredapplicabletospecifiedsubdivisionsoftheseregulations.Havingconsideredallalternatives,unlessotherwiseadoptedandnotedintheCouncilsresponse,theCouncilhasdeterminedthatnoreasonablealternativeitconsidered,orwasotherwisebroughttoitsattention,wouldbemoreeffectiveincarryingoutthepurposeforwhichtheregulationisproposed,wouldbeaseffectiveandlessburdensometoaffectedprivatepersonsthantheadoptedregulation,orwouldbemorecosteffectivetoaffectedprivatepersonsandequallyeffectiveinimplementingtheFairEmploymentandHousingAct.

ECONOMICIMPACTANALYSIS/ASSESSMENT[GovernmentCodeSection11346.9(a)(5)].TheCouncilanticipatesthattheadoptionoftheseregulationswillnotimpactthecreationoreliminationofjobs,thecreationofnewbusinessesortheeliminationofexistingbusinesses,ortheexpansionofbusinessescurrentlydoingbusinesswithintheState.Tothecontrary,adoptionoftheproposedamendmentstoexistingregulationsisanticipatedtobenefitCaliforniabusinesses,workers,andtheState'sjudiciarybyclarifyingandstreamliningtheoperationofthelaw,makingiteasierforemployeesandemployerstounderstandtheirrightsandobligationsandreducinglitigationcostsforbusinesses.Althoughtheregulationsrequireemployerstoprovidefeasiblealternativessuchaslockingtoiletstallsorshowercurtains,anemployerisnotrequiredtoincurany

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particularexpenseifinfeasible.AndexistingCalifornialawalreadycontainsparticularrequirementswithregardtogenderneutralsignage,whichshouldcarryminimalcosts.DOCUMENTSRELIEDUPON[GovernmentCodeSection11347.3(b)(7)].Thefollowingaredocumentsreliedupon,areincludedintherulemakingfile,wereidentifiedforthepublicintheinitialstatementofreasons,andwouldhavebeenmadeavailabletothepublicuponrequest:1.U.S.Dept.ofLabor,OccupationalSafetyandHealthAdministration,BestPractices:AGuidetoRestroomAccessforTransgenderWorkers(June1,2015)2.U.S.Dept.ofLabor,OfficeofFederalContractCompliancePrograms,FrequentlyAskedQuestionsEO13672FinalRule.NONDUPLICATIONSTATEMENT[1CCR12].Forthereasonsstatedbelow,theproposedregulationspartiallyduplicateoroverlapastateorfederalstatuteorregulationwhichiscitedasauthorityorreferencefortheproposedregulationsandtheduplicationoroverlapisnecessarytosatisfytheclaritystandardofGovernmentCodesection11349.1(a)(3).COMMENTSRECEIVEDDURINGTHE45DAYCOMMENTPERIOD[GovernmentCodeSection11346.9(a)(3)].Title:Comment:Thetermstransgenderidentityandtransgenderexpressionarenottermscommonlyusedtodescribethetransgendercommunity.AmoreaccuratetitlewouldbeRegulationRegardingGenderIdentityandExpressionorRegulationsRegardingTransgenderandGenderNonConformingPeopleintheWorkplace.Councilresponse:TheCouncilagrees,butthetitleoftherulemakingactioncannotbechangedwithoutrenoticinganewrulemakingactionthatwouldotherwisebeidenticalbutfortheworkingtitle,whichwouldmeanthattheregulationswouldbecomeeffectivemanymonthslaterthanoriginallyplanned.Therefore,theCouncilhasoptedtoproceedwiththecurrenttitleratherthaninitiateanewrulemakingaction.Section11030(a)[Proposed]:Comment:TheCouncilhasimbeddedadefinitionoffacilitieswithinthetextofSection11034(e)(2).Forsakeofclarity,consistency,andeaseofuse,thedefinitionisbetterplacedintheformalDefinitionsportionoftheregulations(i.e.,Section11030.)Suggesteddefinitionofthewordfacilitiesis:Facilitiesincludesbutisnotlimitedtorestrooms,lockerrooms,dressingrooms,dormitories,orsimilarroomswhichmaybedesignatedforusebyonegenderetc.Councilresponse:TheCouncildeclinestodefinethewordfacilitiesasthewordfacilitiesasitiscommonlyusedanddefinedbythedictionaryprovidessufficientclarity.

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Comment:WeproposeaddingaSection10030(g)toseparatelydefinefacilities.WerecommendthatthisdefinitionstateFacilityincludesbutisnotlimitedtorestrooms,lockerrooms,dressingrooms,dormitories,andothersimilarfacilities.Councilresponse:TheCouncildeclinestodefinethewordfacilitiesasthewordfacilitiesasitiscommonlyusedanddefinedbythedictionaryprovidessufficientclarity.Section11030(b):Comment:Sothattheregulationsareclearthateverypersonhasagenderidentity,andthatgenderidentityisnotjustaboutidentifyingasmaleorfemale,werecommendredefiningthephrasegenderidentitytostatethat:Genderidentitymeanseachpersonsinternalunderstandingoftheirowngender,whichcanincludemale,female,acombinationofmaleandfemale,neithermalenorfemale,agenderdifferentfromthepersonssexatbirth,ortransgender.Councilresponse:TheCouncilagreeswiththisrecommendation,andhasredefinedgenderidentityasfollows:Genderidentitymeanseachpersonsinternalunderstandingoftheirgender,ortheperceptionofapersonsgenderidentity,whichmayincludemale,female,acombinationofmaleandfemale,neithermalenorfemale,agenderdifferentfromthepersonssexassignedatbirth,ortransgender.Section11030(c):Comment:WerecommendmakingclearthatsexandgenderareinterchangeableandsynonymousunderCalifornialaw.Councilresponse:TheCouncilagreesandhasaddedthewordgendertothedefinitionofsex.Section11030(f):Comment:ThedefinitionofTransitioningisvagueandlimiting.Weproposereplacingitwithlanguagereading:

Transitioningisamultistepprocessofunlimiteddurationduringwhichtransgenderpeople take steps to change their sex identity, gender expression, genderpresentation or gender identity. The process of transitioning differs betweenindividualsandwhichincludes,butisnotlimitedto:expressionofpersonalchoicetotransition, expression of interest in changing gender or intent to change gender,presentationasadifferentsex,changingofappearance,changingofnameorselfidentifying pronoun, changing of legal gender on legal documents, adoption ofmannerismsperceivedas