BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 11
          Author:   Migden (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-2, 4/24/07
          AYES:  Corbett, Kuehl, Steinberg
          NOES:  Harman, Ackerman

           SENATE APPROPRIATIONS COMMITTEE  :  10-6, 5/31/07
          AYES:  Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza,  
            Ridley-Thomas, Simitian, Steinberg, Yee
          NOES:  Cox, Aanestad, Ashburn, Dutton, Runner, Wyland
          NO VOTE RECORDED:  Battin


           SUBJECT  :    Domestic partnerships

           SOURCE  :     Author


           DIGEST  :    This bill revises the criteria for establishment  
          of a domestic partnership in California to allow  
          opposite-sex couples over 18 years of age to register as  
          domestic partners, by removing the current limitation that  
          at least one of the opposite-sex partners must be at least  
          62 years old.  This bill makes a technical, conforming  
          change in one provision of the Probate Code.

           ANALYSIS  :    Existing law permits the establishment of a  
          registered domestic partnership by filing a Declaration of  
          Domestic Partnership with the Secretary of State (SOS).   
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          Existing law confers on registered domestic partners rights  
          and responsibilities that are the same as those conferred  
          on married couples, including the filing of joint state  
          income tax returns.

          Existing law requires couples who wish to register as  
          domestic partners to meet the following criteria:

          1. Both are over 18 years of age.

          2. Both are members of the same sex or, if they are of  
             opposite sexes, one of them must qualify for Social  
             Security benefits (62 years of age and over).

          3. Both have a common residence.

          4. Neither person is married to someone else or is a member  
             of a domestic partnership with someone else that has not  
             been terminated, dissolved, or adjudged a nullity.

          5. The two persons are not related by blood such that they  
             could not marry in this state.

          6. Both are capable of consenting to the domestic  
             partnership.  [Section 297 of the Family Code]

          This bill deletes the requirement that domestic partners be  
          of the same sex or, if of different sexes, that one of them  
          be age 62 years or over.

          This bill makes a conforming change in the Probate Code  
          that references the language in Section 297 of the Family  
          Code that this bill deletes from existing law. 

           Background
           
          AB 26 (Migden), Chapter 588, Statutes of 1999, established  
          the domestic partnership registry within the SOS.  To  
          register as domestic partners, same-sex couples and  
          opposite-sex couples, where one partner is age 62 or older:  
           (1) must have a common residence, (2) are not married to  
          other persons or in other domestic partnerships that have  
          not been terminated, dissolved, or adjudged a nullity, (3)  
          are not related by blood such that they could not be  

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          married to each other in this state, (4) are at least 18  
          years of age, and (5) are capable of consenting to a  
          domestic partnership. 

          AB 205 (Goldberg), Chapter 421, Statutes of 2003,  
          significantly expanded the rights and responsibilities of  
          registered domestic partners, paralleling those of married  
          couples.  According to the Senate Judiciary Committee  
          analysis, "Today, there are practically no differences in  
          treatment between married couples and domestic partners,  
          except for federal entitlements or benefits granted only to  
          opposite-sex couples who are married."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                           Fiscal Impact (in thousands)

             Major Provisions                2007-08     2008-09     
             2009-10   Fund  

            Benefits            Unknown, multimillion dollar  
            annualGF/LF/SF
                                costs (see comments below)         

            Tax revenue loss              $7,000    $9,000     
            $11,000General

            PERS/STRS: admin              $140      $252       
            $252Special*

            SOS: registration             Potentially significant  
            costs, fully        Special**
                                offset by filing fee revenues

            FTB implementation            $102      $205       
            $205General

             *    Public Employees Retirement Fund and Teachers  
               Retirement Fund
             **   Business Fees Fund


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          The Public Employee Retirement System (PERS) estimates it  
          will require an additional two positions to support  
          workload increases resulting from new enrollments and  
          overall program growth as a result of this bill.  The state  
          Teachers Retirement System (STRS) was unable to provide  
          administrative cost estimates or estimated retirement  
          benefits' impacts to the committee, but staff estimates  
          similar administrative costs for STRS as for PERS. 

          Projected costs for state government to provide medical,  
          dental, vision and retirement benefits to its employees'  
          dependents pursuant to this bill are unknown, but would be  
          significant.  For purposes of a cost estimate, PERS  
          estimates that as many as 28,300 of its members could  
          potentially be in registered domestic partnerships pursuant  
          to this bill, but of that number, PERS projects state  
          enrollments to increase by 16,500, with 13,500 being the  
          domestic partner and the remainder dependents.  Based on  
          these projections, state contributions for health, vision  
          and dental benefits for these members' dependents will  
          range from $46.2 million to $54.5 million annually. 

          The University of California (UC) estimates that if three  
          percent of its 144,900 employees and annuitants were to  
          register as domestic partners under this bill and then seek  
          to provide medical, dental and vision benefits through  
          their UC eligibility for their partners, costs to the UC  
          would be $12 million annually.  For purposes of a cost  
          estimate, the UC further projected each domestic  
          partnership would seek to cover 1.7 children with benefits,  
          if so, additional benefits costs would be $4.7 million  
          annually.  The California State University estimated that  
          if 10 percent of its 12,253 employees who were not married  
          were to register as a domestic partner, annual benefits  
          costs would exceed $500,000. 

          PERS was unable to provide specific impacts to retirement  
          benefits as a result of increased survivor benefits from  
          this bill becoming law, however, PERS notes that there have  
          only been three cases of heterosexual domestic partners  
          applying for pre-retirement death benefits since the  
          original domestic partner registry went into effect.  STRS  
          was unable to provide any retirement benefit cost  
          information to the committee.  UC has its own retirement  

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          plan, but it is unlikely this bill would have a fiscal  
          effect on it since opposite sex domestic partners are  
          already eligible for survivor benefits if they file a  
          "declaration of domestic partnership" with UC.  Registry  
          with the state would satisfy the documentation requirement  
          for those benefits.

          Costs for local governments to provide medical, dental,  
          vision and retirement benefits to their employees'  
          dependents as a result of this bill are unknown, but would  
          be significant.

          The SOS indicated that while it is unknown how many  
          different-sex couples will choose to register as domestic  
          partners if this bill becomes law, the bill could drive  
          significantly increased costs and workload for associated  
          with providing additional information to the public as well  
          as reviewing and filing additional partnership  
          applications.  Couples seeking to register a different-sex  
          domestic partnership must currently submit a $10 filing fee  
          along with their notarized application, the SOS is  
          authorized to set this fee via regulation to recoup costs  
          incurred with the registration program.  SOS staff  
          indicates any programmatic cost increases associated with  
          this bill can be offset by filing fees, but it is likely  
          the SOS will need additional spending authority in coming  
          fiscal years.  Costs for the SOS to modify forms and its  
          web site are minor and absorbable.

           SUPPORT  :   (Verified  5/31/07)

          California NOW
          California Nurses Association
          California School Employees Association
          California State Employees Association
          California Teachers Association
          City and County of San Francisco
          City of Berkeley
          Congress of California Seniors
          East Bay Municipal Utility District
          Equality California
          Lambda Letters Project
          Planned Parenthood Affiliates of California


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           OPPOSITION  :    (Verified  6/5/07)

          Association of California Water Agencies
          California Catholic Conference
          Capitol Resource Institute
          Concerned Women for America of California

           ARGUMENTS IN SUPPORT  :    The author states that this bill  
          recognizes all committed couples, straight or same-sex,  
          respecting their freedom to choose what's best for their  
          families:
           
            "There are over 4 million unmarried couples within the  
            United States who for many different reasons choose not  
            to get married.  SB 11 is an equity measure recognizing  
            the diversity of family structures and the needs of  
            unmarried people, including people who choose not to  
            marry, cannot marry, or live together before marriage."

          According to the author's office, there are 18 cities or  
          counties in California that have adopted domestic  
          partnership ordinances that include same-sex and  
          opposite-sex couples ages 18 and older.  Those are the  
          cities of Arcata, Berkeley, Cathedral City, Davis, Laguna  
          Beach, Long Beach, Oakland, Palm Springs, Palo Alto,  
          Petaluma, Sacramento, San Francisco, Santa Barbara, Santa  
          Monica, and West Hollywood, and the counties of Los  
          Angeles, Marin and Santa Barbara.  All of these California  
          jurisdictions allow opposite-sex domestic partnerships.

          The California Nurses Association, in support of this bill,  
          commends the author for providing straight couples with the  
          option of registering as domestic partners:  "Throughout  
          the nation, there has been an increase in couples opting  
          for alternatives to marriage.  More than half of couples in  
          the U.S. are living together and refraining from getting  
          married.  People choose not to marry for economic,  
          philosophical, religious, and personal reasons.  Family  
          structures have changed, society has changed, but  
          government has not kept up with the needs of modern day  
          families?.There is an increasing desire by straight couples  
          to enter into a domestic partnership.  SB 11 recognizes all  
          committed couples, straight or same sex, respecting  
          people's freedom to choose and structure their families."

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           ARGUMENTS IN OPPOSITION  :    The California Catholic  
          Conference (CCC) opposes this bill because it would  
          "drastically increase the number of individuals who qualify  
          for domestic partnership benefits - creating yet more  
          confusion in society and the law."  The CCC further states  
          that "[t]he various benefits that have historically been  
          accorded to spouses by government and society were given in  
          order to subsidize a nurturing environment for children.   
          When a male and a female form a couple and are married,  
          society views them as the progenitors, civilizers and  
          caretakers of the next generation.  There are of course  
          exceptions to the rule, as in the case of married couples  
          who adopt their children or who have no children, but  
          society is best served when the benefits are tailored to  
          the ideal.  However, these benefits were never intended to  
          be attached to individuals in other special relationships."  
           [Letter dated April 20, 2007]
           
           Capitol Resource Institute, another opponent, contends:   
          "To grant domestic partnership rights to everyone is  
          degrading to the invaluable institution of traditional  
          marriage.  With domestic partnership, couples will receive  
          all the benefits of marriage without actually being  
          married.  This 'faux marriage' does not encourage couples  
          to get married and raise a healthy family."


          RJG:mw  6/5/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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