BILL ANALYSIS Appropriations Committee Fiscal Summary 205 (Goldberg) Hearing Date: 8/25/03 Amended: 8/21/03 Consultant: K. French & A. Maitland Policy Vote: Judic: 5-1 Rev&Tax: 4-3 ____________________________________________________________ ___ 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: This bill was heard on August 18th, author's amendments were adopted, testimony was taken and the bill was put over to today for VOTE ONLY. Author's amendments delete the provision allowing registered domestic partners to file a joint income tax return beginning in 2005, make a correction to the language to ensure that the bill does not jeopardize the tax-qualified status of the long-term care insurance plans provided by the CalPERS Long Term Care Program, and incorporate language into the family code to clarify that domestic partners use the same filing status for both state and federal income tax returns. 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 employees 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.