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.