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. AB 19 Page 2 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. AB 19 Page 3 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 AB 19 Page 4 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 AB 19 Page 5 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