BILL ANALYSIS                                                                                                                                                                                                    



Subject matter was not heard in Assembly policy committee this  
legislative
Session, should be noted in the last paragraph of the background  
section of the 
CSA analysis.  Language will vary depending on the circumstance.
  AB 26
                                                          Page  1

CONCURRENCE IN SENATE AMENDMENTS
AB 26 (Migden)
As Amended September 7, 1999
Majority vote
 
ASSEMBLY: 41-38                 (May 27, 1999)                   
SENATE:   22-14                 (September 9, 1999)             
   
  Original Committee Reference:    HEALTH  
  
SUMMARY  :  Provides for the definition, registration and  
termination of a domestic partnership with the Secretary of  
State, provides an option for state and local public employers  
to extend health benefits to domestic partners under the Public  
Employees' Medical and Hospital Care Act (PEMHCA), and specifies  
domestic partner hospital visitation rights.

  The Senate amendments  delete the Assembly-approved provision  
requiring health plans and disability insurers to offer the  
option of domestic partner health care benefits as an elective  
coverage option to contracting employers and guaranteed  
associations and instead make technical changes and:

1)Find and declare that it is the intent of the Legislature to  
  provide hospitals and health facilities with the authority to  
  administer visitation policies that apply equally to spouses,  
  registered domestic partners, and other immediate family  
  members.

2)Specify that in order to be eligible as domestic partners, two  
  individuals must be of the same sex or be of the opposite sex,  
  over the age of 62, and eligible for either social security or  
  SSI, as specified.

3)Provide that the domestic partnership shall not change the  
  character of or create any rights to property, as specified,  
  nor does it change individual income or estate tax liability  
  of each domestic partner, as specified.

4)Delete a provision specifying that any domestic partnership  








Subject matter was not heard in Assembly policy committee this  
legislative
Session, should be noted in the last paragraph of the background  
section of the 
CSA analysis.  Language will vary depending on the circumstance.
  AB 26
                                                          Page  2

  entered into outside of this state shall be valid in this  
  state, as specified.

5)As of July 1, 2000, preempt any local ordinance or law that  
  provides for the creation of a domestic partnership, unless  
  the law or ordinance offers rights within that jurisdiction  
  that are in addition to the rights and duties set forward in  
  this bill, as specified.

6)Specify certain circumstances in which a domestic partner  
  shall also be considered a "family member."

7)Prohibit an individual from applying for benefits both as an  
  employee and as a domestic partner.

8)Provide that an employee or annuitant shall present proof of  
  domestic partnership in order to receive the benefits  
  established by this bill.  Provide that the employee or  
  annuitant may be required to provide reimbursement for costs  
  incurred as a result of inaccurate information, as specified.   
  Require the employee or annuitant to provide notice, as  
  specified, of the termination of a domestic partnership.

9)Authorize any employer or contracting agency to offer health  
  benefits to the domestic partners of employees and annuitants.  
   Make certain requirements of each employer or contracting  
  agency in order to comply with this bill.  Provide this  
  benefit is available to the following: represented state  
  employees, as specified; members of the Public Employees  
  Retirement System (PERS) who are employed by the Assembly, the  
  Senate and the California State University, as specified;  
  members of PERS who are employees of the judicial branch,  
  judges and justices, as specified; and other state employees  
  and officers who are not represented in bargaining units, as  
  specified.

10)Authorize an employer to require reimbursement from an  
  employee for any additional costs associated with the benefit  
  provided.









Subject matter was not heard in Assembly policy committee this  
legislative
Session, should be noted in the last paragraph of the background  
section of the 
CSA analysis.  Language will vary depending on the circumstance.
  AB 26
                                                          Page  3

11)Provide for a one-time open enrollment period for employees  
  to begin benefits for their domestic partners.

  EXISTING LAW:  

1)Authorizes, under PEMHCA, the Board of Administration of  
  California PERS to provide health benefits plan coverage to  
  state and local public employees and annuitants and their  
  family members.

2)Provides, by regulation, that a patient of a general acute  
  care hospital may designate visitors regardless of  
  relationship, as specified.  Regulation also provides that a  
  patient of a general acute care hospital may designate  
  visitors in writing, should the patient later lack the  
  capacity to make such a designation known. 

  AS PASSED BY THE ASSEMBLY  , this bill provided for the  
definition, registration and termination of a domestic  
partnership and required health plans and health insurers to  
include an offer of domestic partner health care benefits as an  
elective coverage option.

  FISCAL EFFECT  : According to the Senate Appropriations Committee  
analysis, $118,000 in fiscal year (FY) 1999-2000, $29,000 in FY  
2000-01, and $54,000 in FY 2001-02, from the General Fund (GF)  
for Secretary of State (SOS) registration costs; fee revenue of  
$50,000 in FY 1999-2000, $100,000 in FY 2000-01, and $150,000 in  
FY 2001-02, to GF.  Unknown costs to employers for health  
benefits.  AB 26 does not require employers to provide this  
coverage.  However, if elected, the state contribution will be  
significant, determined by the number of participants.  SOS will  
have to design two forms, the Registration of Domestic  
Partnership and the Termination of Domestic Partnership.   
Initial start-up costs result from developing the regulations  
for fees and the design, printing and distribution of the two  
forms.  Ongoing costs include processing requests for  
registration.  SOS expects the filing fee to be approximately  
$10 and the revenue generated will exceed costs after the  
initial start-up.








Subject matter was not heard in Assembly policy committee this  
legislative
Session, should be noted in the last paragraph of the background  
section of the 
CSA analysis.  Language will vary depending on the circumstance.
  AB 26
                                                          Page  4


  COMMENTS  : This bill was substantially amended in the Senate.   
The amendments adopted in the Senate are consistent with  
policies approved by the Assembly in this bill and in AB 107  
(Knox).


  Analysis Prepared by  : Ellen McCormick  / HEALTH / (916) 319-2097  

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