BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1967
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          Date of Hearing:   May 12, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 1967 (Leno) - As Amended:  April 28, 2004 

          Policy Committee:                              JudiciaryVote:8-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill:

          1)Allows two persons of the same sex to enter into the civil  
            contract of marriage in California.

          2)Declares that the above does not modify the Family Code  
            provision, enacted by Proposition 22, which addresses  
            marriages from other jurisdictions.

           FISCAL EFFECT  

          1)Counties would incur the costs associated with issuing  
            marriage licenses to same-sex couples and to conduct some  
            additional marriage ceremonies.  These costs would be fully  
            offset by fees.  

          2)Counties would incur one-time, minor reimbursable costs to  
            modify and print new forms associated with the marriage  
            license process. 

          3)In a preliminary estimate, the Franchise Tax Board (FTB) staff  
            indicate an annual income tax-related revenue loss of about $1  
            million for every 4,900 same sex couples whose filing status  
            would change to married. This is the estimated net effect of  
            these couples being required to file tax returns as married  
            filing joint or as married filing separate.  

          4)The FTB also estimates one-time General Fund costs of $120,000  
            in 2004-05 for (a) reprogramming and testing automated systems  
            that compare federal and state tax information for audit  
            purposes and (b) additional customer service contracts for  








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            clarification of tax laws with respect to same sex marriage.

           COMMENTS  

           1)Purpose  . In support of the bill, the author states "The time  
            has come for California to honor its commitment to equality  
            for all Californians." 

          The bill's sponsor, Equality California, states, "All  
            Californians deserve access to this civil institution that  
            provides a myriad of rights and responsibilities not afforded  
            to domestic partners, including social security benefits,  
            family and medical leave, joint income tax filing, and  
            thousands of Federal benefits, without regard to their gender  
            or sexual orientation... Our organization has one goal-equal  
            rights for the lesbian, gay, bisexual, and transgender  
            Californians. California has the opportunity to set an example  
            for the nation by recognizing, as the Massachusetts Supreme  
            Court said, that there is no rational basis for discrimination  
            by the state against same-sex couples." 

           2)Recent Events and Status of Litigation  . In November 2003 the  
            Massachusetts Supreme Judicial Court ruled that the  
            Massachusetts definition of marriage violated that state's  
            constitutional equal protection provisions. Three provincial  
            appellate courts in Canada have also ruled that Canada's  
            constitution requires that same-sex couples be permitted to  
            marry. It was in the context of the Massachusetts and Canadian  
            decisions that the Mayor of San Francisco issued an order that  
            the county clerk should start allowing same-sex couples to  
            obtain marriage licenses. From February 12 through March 11,  
            2004, 4,037 same-sex couples were married in San Francisco.  
            The Mayor's decision is now under review by the California  
            Supreme Court. In deciding to hear the case, the high court  
            also gave explicit permission for challenges to the state's  
            definition of marriage to proceed at the trial court level. 

            There are now two primary legal proceedings regarding the  
            issuance of same-sex marriage licenses. First, the California  
            Supreme Court is considering whether San Francisco officials  
            should have waited for a court ruling that same-sex couples  
            have a constitutional right to marry rather than independently  
            deciding to issue marriage licenses to same-sex couples. The  
            Supreme Court is expected to schedule oral arguments for June.  









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            Second, in direct response to the Supreme Court's invitation  
            for such lawsuits to be filed, two lawsuits were brought  
            against the State in San Francisco Superior Court contending  
            that California's statutory exclusion of same-sex couples from  
            marriage is unconstitutional. Those two lawsuits have now been  
            consolidated into a single case. The State has not yet  
            responded to the complaints, and there is no way to predict at  
            this point how long these cases will be in the courts. All  
            other marriage lawsuits in the State have been stayed pending  
            the Supreme Court's rulings in the cases it is now hearing.

            [The Assembly Judiciary Committee's analysis of this bill  
            contains a thorough discussion of the legal and constitutional  
            questions surrounding this issue.]

           3)Opposition  . Opponents, which include the Committee on Moral  
            Concerns, the Traditional Values Coalition, the Campaign for  
            California Families, and the Capitol Resource Institute  
            generally express their moral opposition to same sex marriage  
            and argue that the bill violates will and vote of the people  
            as expressed by their approval of Proposition 22.

           4)Prior Legislation  . Since 1999, several statutes have been  
            enacted to first allow the registration of domestic partners  
            with the state and then to expand their legal rights.  Most  
            recently, AB 205 (Goldberg)-Chapter 421/Statutes of 2003,  
            extends most of the rights and responsibilities available to  
            married couples under state law to registered domestic  
            partners. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081