Gov. David Patterson announced that same-sex marriages performed in other states and countries will be legally recognized in New York. While the Empire state will not allow for the performance in state, those who marry in other states will receive full rights from the state and agencies that do not comply will be subject to liability. You can read the text of the official announcement and see his statement here.
In New York, same-sex marriages have moved slowly. In 2006, the state courts refused to create a right, deferring to the legislature for this act, though the Court's decision did not prevent the recognition of this right in New York. Because of Republicans in the state senate, the legislature has not passed legislation to recognize same-sex marriages. Yet, with elections in 2008, Democrats may pick up some seats in the state senate. If this were to occur, then same-sex marriage may pass through the legislature and the act will not be subject to a Governor's undemocratic veto, as in the case of California.
The practical effect may be "marriage tourism," where citizens of New York visit California or Canada for marriage and then return to living in New York. This would not happen in Massachusetts though because of the state's residency requirement.
Those opposed to this measure still possess the chance to persuade voters that this is wrong. Whether or not this occurs is another story.
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