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 FN: 0003632