BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           1080 (Kehoe)
          
          Hearing Date:  8/5/02           Amended: 6/29/02       
          Consultant:  Karen French           Policy Vote: Judiciary   
          4-1                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 1080 prohibits state agencies from contracting for goods  
          or services with suppliers that do not offer the same  
          benefits to domestic partners that are offered to employees  
          with spouses.

                              Fiscal Impact (in thousands)
           
          Major Provisions        2002-03             2003-04               2004-05   
           Fund  
          
          State contracts             ------Unknown, potentially  
          significant---------     Various
                                                    Increase in contracting  
          costs
          
          STAFF COMMENTS:  
          
          This bill meets the criteria for referral to the Suspense  
          File.

          The actual costs of this bill are unknown.  According to  
          the Departments of General Services and Finance, this bill  
          would increase costs to the State in the following three  
          ways:
           Direct Contract Costs-In a competitive bid situation, the  
            contract award would not necessarily go to the low  
            bidder, but rather, the lowest bidder that meets the  
            benefit requirement imposed by this bill.  In effect, the  
            State would be required to "throw out" bids from  
            suppliers without benefits.
           Litigation and Arbitration Costs-Because of difficulties  
            in administering the bills requirements and in verifying  
            that benefits actually are being offered to domestic  
            partners, the bill could result in an increase in the  
            number of protests of contract awards.










           Benefit Costs-Businesses offering these benefits would  
            incur higher costs, which would be passed on to, the  
            State in the form of higher bids and higher contract  
            costs.