BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 19
                                                                  Page  1

          Date of Hearing:   May 18, 2005

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                      AB 19 (Leno) - As Amended:  May 12, 2005 

          Policy Committee:                              JudiciaryVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill enacts the Religious Freedom and Civil Marriage  
          Protection Act: 

          1)Amends Section 300 of the Family Code to allow two persons of  
            the same sex to enter into the civil contract of marriage in  
            California. 

          2)Establishes that no religious official shall be required to  
            perform or solemnize any marriage in violation of their  
            religious conviction. 

          3)Finds and declares that: 

             a)   The Act does not amend or modify the Family Code Section  
               308.5, enacted by Proposition 22, to the extent that  
               section addresses only marriages from other jurisdictions. 
             b)   Family Code Sections 300 and 308.5 have been declared  
               unconstitutional by a state trial court judge, and the  
               purpose of this act is to correct constitutional  
               infirmities of Section 300, which was enacted by the  
               Legislature. 
             c)   The California Supreme Court, and not the Legislature,  
               has the authority to make a final determination regarding  
               the meaning, validity, or invalidity of Section 308.5. 

           FISCAL EFFECT  

          The cost estimates assume that about one-half of the estimated  
          100,000 same-sex couples in California will marry in the first  
          three years after the effective date of this Act. (The 2000  
          Census identified 92,138 same-sex couples living in California.  








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          The Census also found that 92% of heterosexual couples living  
          together in 2000 were married.) As of May 1, 2005, there were  
          about 27,300 registered domestic partnerships in the state. (It  
          is assumed that the vast majority of these are same-sex  
          couples.) Therefore, it is assumed that bestowing the rights of  
          marriage to same sex couples will result in 50,000 marriages  
          after three years, an amount exceeding the estimated number of  
          domestic partnerships by that time by about 20,000.

           1)Income Taxes  . According to a Franchise Tax Board estimate for  
            similar legislation in 2004, there would be an annual income  
            tax-related revenue loss of about $1 million for every 4,900  
            same sex couples whose filing status would change to married.  
            This is the estimated net effect of these couples being  
            required to file tax returns as married filing joint or as  
            married filing separate. It is therefore assumed that the  
            total revenue loss will increase incrementally to about $10  
            million after three years, with minor annual increases  
            thereafter as additional marriages take place.

           2)Means-Tested Public Benefits  . The largest potential impacts  
            are in the Medi-Cal and SSI/SSP, programs. With same-sex  
            marriage, the income of benefit recipients' same-sex spouses  
            would be included in calculating program eligibility. In  
            general, this will reduce caseloads and program costs.  
            However, eligibility for these programs is determined by  
            federal laws and regulations. The federal Defense of Marriage  
            Act limits the definition of a spouse to a husband or wife of  
            the opposite sex, thus absent a change in federal law or a  
            waiver of federal regulations for Medi-Cal and SSI/SSP, it is  
            questionable whether the state could implement AB 19 with  
            respect to these programs. Moreover, even though enacted  
            domestic partnership legislation (AB 205,Goldberg) intends  
            that registered partners' household income be included in  
            determining eligibility for means-tested programs, the  
            Department of Health Services has not yet sought approval from  
            the federal government to implement those provisions. The  
            estimates below illustrate potential savings if federal law  
            were to change or eligibility waivers were obtained. 

              a)   Medi-Cal  . Estimated annual GF savings of around $5  
               million by the third year. Estimate assumes 3,400  
               households receiving an average of $250 per month in  
               Medi-Cal benefits would lose eligibility.









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              b)   SSI/SSP  . Estimated annual GF savings of around $8.6  
               million by the third year. Estimate assumes 2,400  
               households receiving an average of $600 per month in  
               benefits would lose eligibility following marriage.

           3)Economic Impacts  . There will be increased economic activity  
            related to the outlays associated with thousands of wedding  
            ceremonies that would occur upon enactment of this bill. This  
            would include weddings involving California residents and  
            same-sex couples from other states that may wish to marry. To  
            the extent this represents spending that would otherwise not  
            occur, there would be an increase in tax revenues. This  
            increase cannot be quantified. It should be noted that much of  
            the expenditures related to weddings are for services and thus  
            are not subject to state sale taxes.

           COMMENTS  


           1)Purpose  . In support of the bill, the author states: "For 127  
            years?California marriage law was gender-neutral, containing  
            no reference to "man" or "woman." The Religious Freedom and  
            Civil Marriage Protection Act simply would restore the  
            pre-1977 language to the Family Code in order to provide equal  
            marriage rights to same-sex couples?Although California's  
            domestic partner laws provide many of the benefits,  
            obligations, and protections to same-sex couples that are  
            afforded to married heterosexual partners, domestic  
            partnerships are not equal to marriage?legal distinctions  
            between heterosexual and same-sex couples relegate lesbian,  
            gay, and bisexual Californians to second-class status and  
            constitute an impermissible use of government power to  
            stigmatize same-sex couples and their families with a brand of  
            inferiority."


           2)Recent Events and Status of Litigation  . In November 2003 and  
            February 2004, the Massachusetts Supreme Court ruled that the  
            Massachusetts definition of marriage violated that state's  
            constitutional equal protection provisions. In response to  
            this advisory opinion, that state legalized same-sex marriage  
            and began issuing marriage licenses to same-sex couples on May  
            17, 2004. In February 2004, the Mayor of San Francisco issued  
            an order that the county clerk should start allowing same-sex  
            couples to obtain marriage licenses. From February 12 through  








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            March 11, 2004, 4,037 same-sex couples were married in San  
            Francisco. However, on March 11, 2004, the California Supreme  
            Court ordered San Francisco to stop issuing marriage licenses  
            to same-sex couples while the court considered the legality of  
            the County's actions.


            On August 12, 2004, the California Supreme Court unanimously  
            ruled that San Francisco officials exceeded their authority in  
            issuing the licenses because it is the role of the courts, not  
            local officials, to determine the constitutionality of the  
            state's marriage laws. By a 5-2 vote, the court also  
            invalidated the 4,037 marriages that had taken place in San  
            Francisco. The court did not rule on the constitutionality of  
            the state's statutory prohibition of marriage by same-sex  
            couples. Rather, an order filed by the Court in March 2004  
            expressly invited the filing of a lawsuit in superior court to  
            address this very issue.


            Two lawsuits were brought against the state in San Francisco  
            Superior Court contending California's statutory exclusion of  
            same-sex couples from marriage is unconstitutional. On March  
            14, 2005, the San Francisco Superior Court issued its ruling  
            in the coordinated marriage cases, concluding that same-sex  
            couples are denied equal protection by marriage laws that  
            prohibit them from marrying. The trial court held that  
            California's exclusion of same-sex couples from marriage  
            constitutes discrimination on the basis of gender and  
            interferes with the fundamental right to marry the person of  
            one's choosing. 


            Under the court's reasoning, California's statutory exclusion  
            of same-sex couples from marriage should thus be subject to  
            the strictest level of constitutional scrutiny. But according  
            to the court, the marriage exclusion could not survive even  
            the lowest level of constitutional scrutiny, that is, a review  
            to determine whether the law has even a rational basis. The  
            court explained that California could not demonstrate any  
            rational basis for denying same-sex couples the right to  
            marry. 

            The court emphasized that so-called "separate but equal"  
            systems have long been rejected by the courts as  








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            unconstitutional. It is expected the Superior Court's decision  
            in the coordinated marriage cases will be appealed. The appeal  
            process could take one, two, or more years.

            [The Assembly Judiciary Committee's analysis of this bill  
            contains a thorough discussion of the related legal history  
            and the legal and constitutional questions surrounding this  
            issue.] 


           3)Opposition  . Opponents, which include the Traditional Values  
            Coalition, the Campaign for California Families, the Capitol  
            Resource Institute, and many individual churches  generally  
            express their moral opposition to same sex marriage and argue  
            that the bill violates will and vote of the people as  
            expressed by their approval of Proposition 22. In addition,  
            opponents write: "Federally funded programs, employee health  
            plans, Medi-Cal benefits, and school curriculum would have to  
            be altered at taxpayer expense reflecting the newly sanctioned  
            'marriages' and new definition of 'family.'"



           4)Related Legislation  . ACA 3 (Haynes), which proposes to amend  
            the state constitution to limit marriage and the rights and  
            responsibilities of marriage to opposite-sex couples only,  
            failed passage in the Assembly Judiciary Committee.


          SCA 1 (Morrow), which is identical to ACA 3, failed passage in  
            the Senate Judiciary Committee.

           5)Prior Legislation  . Last year, AB 1967 (Leno), which was  
            substantially similar to AB 19, was held on this committee's  
            Suspense file. Since 1999, several statutes have been enacted  
            to first allow the registration of domestic partners with the  
            state and then to expand their legal rights.


            Most recently, AB 205 (Goldberg), Statutes of 2003, extends  
            most of the rights and responsibilities available to married  
            couples under  state  law to registered domestic partners. That  
            bill became fully operative on January 1, 2005, and it has  
            been upheld by the courts against challengers' arguments that  
            granting legal protections to same-sex couples is inconsistent  








                                                                 AB 19
                                                                  Page  6

            with Proposition 22. The provisions of AB 205 preclude joint  
            filing of income taxes, fail to treat earned income as  
            community property for state income tax purposes, and deny  
            access to certain long-term care benefits. 


           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081