BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Carole Migden, Chair 849 (Leno) Hearing Date: 8/15/05 Amended: 6/28/05 Consultant: Karen French Policy Vote: Judiciary 5-2 _________________________________________________________________ ____ BILL SUMMARY: AB 849 enacts the Religious Freedom and Civil Marriage Protection Act to redefine "marriage' in California as a union between two persons, making marriage gender-neutral and thereby permitting same-sex marriages in the state. The bill would not require any clergy or religious official to solemnize any marriage in violation of his or her right to free exercise of religion as guaranteed by the US and California Constitutions. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2005-06 2006-07 2007-08 Fund PIT Revenue loss -- $3,000 $3,000 General _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. In 2004, the FTB estimated a state personal income tax (PIT) revenue loss of about $1 million for every 4,900 same-sex couples whose filing status would change. These couples would have a change in state filing status to married filing joint or married filing separate. The 2000 census identified 92,138 same-sex couples living in California (as of May 1, 2005, there were 27,300 registered domestic partnerships in California, the majority of which are same-sex couples). In less than a month last year, over 4,000 same-sex couples were married in San Francisco. Assuming one-half of the existing registered domestic partners marry within the first year, revenue loss for fiscal year 2006-07 and each year thereafter would be $3 million. The actual number of marriages could be significantly greater. The 2000 census also found that 92% of cohabitating heterosexual couples were married. If a similar pattern occurred with same sex couples, actual losses probably would be significantly greater. In addition, there would be a minor revenue increases from marriage license fees and unquantifiable increased economic activity surrounding more weddings in the state. Offsetting savings could occur from reduced eligibility for Medi-Cal and SSI/SSP, but these savings would accrue only if federal law changes or eligibility waivers were granted. AB 849 is identical to AB 19 (Leno, 2005) which failed passage on the Assembly Floor. The contents of AB 19 were amended into AB 849 on June 28th.