BILL ANALYSIS AB 1967 Page 1 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 AB 1967 Page 2 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. AB 1967 Page 3 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