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AB 17 (Chapter 752, Statutes of 2003)
Assemblymember Christine Kehoe (D - San Diego)


EQUAL BENEFITS IN STATE CONTRACTS

AB 17 would prohibit state agencies from entering into a contract worth $100,000 or more for the acquisition of goods and services with businesses that discriminate in providing benefits to employees with spouses and employees with domestic partners.  The requirement of AB 17 goes into full effect on January 1, 2007.

This bill is based on a simple premise.  Public tax dollars being spent by state agencies to contract for goods and services MUST NOT subsidize workplace discrimination.   More than 5,700 employers nationwide, including the State of California, respect the rights of all workers and refuse to discriminate in providing benefits to an employee with a spouse or an employee with a domestic partner.   This policy affirms California’s commitment to equality.   To promote that principle, our state should only do business with contractors that are willing to make the same commitment to equality.

Other Jurisdictions with Equal Benefits Policies: California cities of Berkeley, Los Angeles, Oakland, City and County of San Francisco, West Hollywood, and San Mateo County. These jurisdictions reported no increase in contracting costs.  Based upon these experiences, it is expected that there would be no increase in the contracting cost to the state.

Addressing Religious Organizations' Concerns: To protect the rights of religious employers, this bill includes a provision that allows contractors to provide benefits to legally domiciled cohabitants of employees.  This respects a religious employer who does not want to ask or acknowledge that employees may be gay and allows for benefits to be provided without violating any religious belief.

De Minimis Implementation Costs: There is no cost to the State to implement the requirements of AB 17 because contractors will self-certify their compliance and that state agencies shall use existing enforcement powers to implement the policy.

Nominal Costs of Domestic Partner Benefits: Fifteen years of actuarial data have established beyond a doubt that the costs of domestic partner benefits are de minimis.  Clear Channel Outdoor/Northern California, in its support of AB 17, wrote that they "have seen absolutely no increase in costs."  According to the Society for Human Resource Management, in offering domestic partner benefits, 85 percent of employers surveyed reported no increase in their health care costs.

Support: Equality California (Sponsor), Clear Channel Outdoor/Northern California, Genentech, Sempra Energy, Greater San Diego Business Assn., West Hollywood Chamber of Commerce, CA Lt. Gov. Cruz M. Bustamante, CA Insurance Commissioner John Garamendi, the CA Labor Federation AFL/CIO, Gray Panthers, CA Council of Churches, Northern CA Nevada Conference of the United Church of Christ, St. Paul Lutheran Church, Lake Merritt United Methodist Church, CA Commission on the Status of Women, the San Mateo County Board of Supervisors, and a long list of businesses, nonprofit organizations, civil rights groups, the faith community, governmental entities, health, legal, and social services organizations, labor, political, and senior groups.

Any questions, please contact Eric Astacaan or Alicia Priego at 916-319-2076.


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