BILL ANALYSIS
Appropriations Committee Fiscal Summary
205 (Goldberg)
Hearing Date: 8/18/03 Amended: 7/16/03
Consultant: K. French & A. Maitland Policy Vote:
Judic: 5-1
Rev&Tax: 4-3
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BILL SUMMARY:
AB 205 enacts the California Domestic Partner Rights and
Responsibilities Act of 2003, which recasts the existing
Domestic Partnership Act and extends to registered domestic
partners substantially all rights, benefits, and
obligations of married persons under state law, with the
exception of those rights, benefits, and obligations
accorded only to married persons by federal law, the
California Constitution, or initiative statutes.
Fiscal Impact (in thousands)
Major Provisions 2003-04 2004-05 2005-06 2006-07 Fund
CalPERS-Admin. --------------minor------------------------General
CalPERS--State
Retirement & Death
benefits ---------minor, if any increase----------PERF
Health benefits
----------------minor-------------------PERF
CalPERS-Contracting
Agencies --------------unknown--------------Local
SOS notifications minor -- --
--General
Local mandate --------Unknown, offset by filing fees---Local
Courts -------Unknown, offset by filing fees----General
STAFF COMMENTS:
In its current form, this bill meets the criteria for
referral to the Suspense File. If the author's amendment
noted below is adopted, the bill probably would not be a
candidate for Suspense.
As proposed to be amended, the provision allowing
registered domestic partners to file a joint income tax
return beginning in 2005 would be deleted. Currently, each
partner in a domestic partnership files an income tax
return as a single filer or as a head of household if the
partner has a dependent. Medical expenses for a domestic
partner can be included in a taxpayer's medical expense
deduction. The provision allowing joint filing was
projected by the Franchise Tax Board to reduce General Fund
revenue $500,000 in the current year, $4 million in 2004-05
and $5 million in 2005-06. In addition, FTB would incur
administrative costs.
Staff recommends the bill be amended on page 6, line 38, to
strike the word "subdivision" and insert "section." This
amendment will ensure that AB 205 does not jeopardize the
tax-qualified status of the long-term care insurance plans
provided by the CalPERS Long Term Care Program.
CalPERS notes that costs for increased benefit eligibility
associated with this bill would be minor and would not
result in an increase in rates or actuarial assumptions.
Domestic partners already have rights with respect to
health benefits, which is the most costly area. AB 205
will increase costs for contracting agencies, because it
eliminates a contracting agency's discretion in providing
health coverage for domestic partners of its employees and
annuitants. Assuming an additional 600 enrollees at an
annual cost of $2,400 per enrollee, costs to employers and
emplloyees could be $1.8 million annually. A precise
figure for the additional cost to employers of this
extended coverage is not possible, because public agencies
have different employer contribution amounts.