BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

                                AB 107  (Knox)

Hearing Date:8/16/99            Amended:5/24/99        
Consultant: Maureen Brooks          Policy Vote:I. R.  4-2
____________________________________________________________ 

BILL SUMMARY:   AB 107 authorizes state and local employers  
to elect to include domestic partners within the definition  
of  "family members" for the purpose of providing health  
benefits under the Public Employees' Medical and Hospital  
Act.

                         Fiscal Impact (in thousands)  
Major Provisions             1999-2000       2000-01       2001-02    Fund  

Health coverage     ---unknown, subject to employer
                              option------------Various

Admin costs           $45     $45       $45PERF

STAFF COMMENTS:  This bill may meet the criteria to be  
placed on the Suspense file if employers elect to offer  
this benefit.  AB 107 does not require employers to provide  
this coverage.  However, if elected, the state contribution  
will be significant, determined by the number of  
participants. 

Agencies electing this coverage will be responsible for  
applicable contributions which vary depending upon the  
number of employees, family size, the agency's individual  
contract provisions and health plan selection.  The  
employer and employees share of any premium  increases   
resulting from this bill will be determined by collective  
bargaining agreements for represented employees and the  
contribution rates will be set by employers for  
nonrepresented employees.

An employee of an agency contracting for this coverage will  
have to certify his/her partner's eligibility as a domestic  
partner based on specified criteria and on an enrollment  
document designated by CalPERS.  The employee will be  
liable for reimbursing the employer, the health plan, and  
CalPERS for any costs should the submitted documentation be  
determined to be fraudulent.











AB 107 defines domestic partners as:

 Both persons have a common residence and agree to be  
  jointly responsible for each others basic living  
  expenses,
 Neither person is married or in another domestic  
  partnership,
 Both persons are at least 18 years of age and not blood  
  related,
 Both must file applicable certificates of eligibility as  
  specified.

The total 1999 health care premiums paid for active  
employees and annuitants by state and local employers is  
expected to be $1.68 billion.