BILL ANALYSIS AB 205 Page 1 Date of Hearing: April 30, 2003 ASSEMBLY COMMITTEE ON APPROPRIATIONS Darrell Steinberg, Chair AB 205 (Goldberg) - As Amended: March 25, 2003 Policy Committee: JudiciaryVote:9-4 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill extends most of the rights and responsibilities available to married couples under state law to registered domestic partners. Specifically, this bill: 1)Provides that, effective January 1, 2005, registered domestic partners, former domestic partners, and surviving domestic partners shall have the same rights, protections, and benefits, and shall be subject to the same responsibilities, obligations, and duties under state law as granted to, and imposed upon, spouses, former spouses, and widows or widowers, respectively, of a civil marriage. Among these rights are laws regarding taxation, including joint filing of income tax returns, marital tax exemptions, estate tax exemptions, and non-reassessment of real property upon a spouse's death. 2)Provides that the rights and obligations of domestic partners with respect to a child of either partner are the same as those of former or surviving spouses in a civil marriage. 3)Repeals existing provisions for the termination of a domestic partnership under specified circumstances and instead provides for termination by: (a) filing a Notice of Termination of Domestic Partnership with the Secretary of State (SOS) if certain conditions are met, including that there are no children involved and the domestic partnership is not more than five years in duration; or (b) commencing proceedings for dissolution, nullity, or legal separation in superior court. 4)Requires the SOS to notify all registered domestic partners, prior to three specific dates, regarding the bill's changes to law and also makes related and conforming changes to the AB 205 Page 2 definition of "domestic partner" and the law relating to domestic partners. FISCAL EFFECT 1)General Fund revenue loss of up to several million dollars annually from the joint filing of tax returns by domestic partners. (The total annual revenue loss is unknown, but would depend on the number of domestic partners each year who elect to file joint instead of single returns, the incomes of these individuals, and the tax savings each partnership realizes. For example, there are currently almost 20,000 registered domestic partnerships. If 10 to 20 percent of partnerships filed jointly and realized tax savings of $500 to $1,000 each, the total state revenue loss would be $1 million to $4 million.) 2)The SOS estimates one-time costs of about $50,000 to revise forms, prepare and mail the required notifications, and modify software. COMMENTS 1)Purpose . This bill, sponsored by the Coalition for Pride and Equality (CAPE), extends most of the rights and responsibilities of marriage available under state law to domestic partners. CAPE maintains that granting these rights will help domestic partners to "care for each other and their families, including community property, financial support obligations, assumption of parenting responsibilities, and mutual responsibility for debts. The bill will provide crucial protections for children who deserve to have a fully legalized relationship with both of their parents, and deserve to have parents who have a recognized legal relationship to each other." The author indicates that the bill is intended to ensure that domestic partners have the opportunity to obtain the rights, protections, benefits, responsibilities, are obligations regarding such laws relating to: a) Domestic relations, including, but not limited to, rights and obligations of financial support during and after the relationship, community property, and evidentiary privileges; AB 205 Page 3 b) Child custody, visitation, and duties of financial support of children; c) Title and other incidents of the acquisition, ownership, or transfer of real or personal property during life or at death, as well as laws relating to access to student family housing, senior citizen housing, and rent control protections; d) Obligations to make disclosures regarding spousal relationships and to take other steps to prevent conflicts of interest; e) Government benefits, including, but not limited to, workers' compensation, public assistance, transfer of licenses upon death, and the ability to apply for absentee ballots and other documents for a spouse; f) Taxes, including, but not limited to, joint filing of income tax returns, marital tax exemptions, estate tax exemptions, and non-reassessment of real property upon a spouse's death; g) Health insurance coverage for family members, family care and medical leave, bereavement leave, coverage of family members under medical, dental, life, and disability insurance, and spousal pension rights and death benefits; h) Legal claims related to, or dependent upon, family status, including, but not limited to, claims for loss of consortium, and victim's compensation; i) Anatomical gifts, consent to autopsy and disposition of remains, and rights of burial in family cemeteries; and j) Laws prohibiting marital status discrimination. 2)Rights Not Granted . Not all of the rights and responsibilities available to and imposed upon married couples will be extended to domestic partners under this bill. First, the bill deals only with the rights and responsibilities available under state and not federal law. Thus, none of the 1,049 federal protections, benefits, and responsibilities (per U.S. General Accounting Office), such as social security, AB 205 Page 4 Medicare, and federal tax considerations, would be extended to domestic partners under this bill. Second, the bill provides no assurance to domestic partners that their partnerships will be legally recognized in other states. Third, this bill does not address those rights and responsibilities available to married couples under the California Constitution, initiative statutes, or those statutes that have been established in ways that cannot be changed by the Legislature with a bill passed by a simple majority vote. 3)Opposition . The Committee on Moral Concerns states that the bill will "expand domestic partnership laws to be equal with marriage, thus creating gay marriages?Contrary to the bill's language, California has a legitimate interest in not legalizing gay marriages or expanding domestic partner laws." The Campaign for California Families also opposes this measure, opining that the bill will "essentially create homosexual 'marriage' in California by awarding virtually all the rights of marriage to 'domestic partners,' which are overwhelmingly homosexual couples." 4)Prior Legislation . AB 26 (Migden)-Chapter 588/ Statutes of 1999, authorized domestic partnership registration in California. AB 25 (Migden), Chapter 893/Statutes of 2001 granted limited rights to domestic partners in the areas of hospital visitation and health benefits if one of the partners is a state employee. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081