BILL NUMBER: AB 506	CHAPTERED
	BILL TEXT

	CHAPTER  306
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2009
	APPROVED BY GOVERNOR  OCTOBER 11, 2009
	PASSED THE SENATE  AUGUST 17, 2009
	PASSED THE ASSEMBLY  AUGUST 20, 2009
	AMENDED IN SENATE  JUNE 25, 2009
	AMENDED IN ASSEMBLY  MARCH 18, 2009

INTRODUCED BY   Assembly Member Furutani

                        FEBRUARY 24, 2009

   An act to amend Sections 24214, 24216, 24216.5, and 24216.6 of,
and to add Section 24214.5 to, the Education Code, relating to state
teachers' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 506, Furutani. State teachers' retirement: postretirement
earnings.
   (1) The State Teachers' Retirement Law limits the amount of
postretirement compensation that may be earned in specified types of
employment by a retired member of the Defined Benefit Program without
a reduction in the retirement benefits of the member. That law,
operative until June 30, 2010, provides exemptions from this limit
and specifies that the limitation provisions do not apply to
compensation earned by a member retired for service who has returned
to work after retirement and, for at least 12 consecutive months, has
not performed specified activities.
   This bill would, as of July 1, 2010, apply a limitation of $0 to
the compensation for performance of specified activities as an
employee of an employer, an employee of a third party, or as an
independent contractor during the first 6 calendar months after a
member retired for service under this part, if the member is below
normal retirement age at the time the compensation is earned. This
bill would also extend the operation of these provisions until June
30, 2012.
   (2) Under that law, operative until June 30, 2010, the service
retirement allowance of a retired member of the Defined Benefit
Program is exempt from a reduction if the retired member is appointed
as a trustee or administrator by the Superintendent of Public
Instruction for a maximum period of 2 years, as specified. That law
also exempts from the earnings limitation, until June 30, 2010,
service performed by a retired member in an emergency situation to
fill a vacant administrative position, as specified. The law requires
the employing school district to submit documentation to
substantiate the eligibility of the temporary employment of the
retired member for these exemptions.
   This bill would provide that these exemptions end no more than 24
consecutive months, rather than 2 years, from the date the exemption
commenced. The bill would prohibit an exemption under the latter
provision from being granted to a member retired for service whose
termination of employment with the employer is the basis for the
vacant administrative position. This bill would require the
documentation to substantiate that exception to be received by the
system no later than June 30 of the school year for which the
exemption is to apply. The bill would extend these provisions until
June 30, 2012.
   (3) That law further exempts from the earnings limitation, until
June 30, 2010, compensation received by a retired member providing
specified types of services, including direct remedial instruction,
as specified, if that retired member retired on or before January 1,
2007. That law requires a school district that employs the retired
member to submit documentation to the retirement system that
substantiates the eligibility of the temporary employment of the
retired member for this exemption.
   This bill would provide that the compensation received by a
retired member providing those specified types of services is exempt
from the earnings limitation if the member retired for service with
an effective date on or before January 1, 2009. The bill would
require the documentation to substantiate that exception to be
received by the system no later than June 30 of the school year for
which the exemption is to apply. The bill would extend these
provisions until June 30, 2012.
   (4) This bill would also make technical, nonsubstantive changes to
these provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 24214 of the Education Code, as amended by
Section 5 of Chapter 494 of the Statutes of 2008, is amended to read:

   24214.  (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system, but the member may not make contributions to
the retirement fund or accrue service credit based on compensation
earned from that service. The employer shall maintain accurate
records of the earnings of the retired member and report those
earnings monthly to the system and retired member as described in
Section 22461.
   (b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor may not be less than the minimum, nor exceed that paid by
the employer to other employees performing comparable duties.
   (c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
   (e) (1) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned by a
member retired for service under this part who has returned to work
after the date of retirement and, for a period of at least 12
consecutive months, has not performed the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system. For the
purpose of this paragraph, the period of 12 consecutive months shall
begin no earlier than the effective date of the member's most recent
retirement.
   (2) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, and if that compensation is not exempt from
that limitation under subdivision (e) or any other provisions of law,
the member's retirement allowance shall be reduced by the amount of
the excess compensation. The amount of the reduction may be equal to
the monthly allowance payable but shall not exceed the amount of the
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned.
   (h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.
   (i) This section shall remain in effect only until June 30, 2012,
and shall be repealed on January 1, 2013, unless a later enacted
statute deletes or extends that date.
  SEC. 2.  Section 24214 of the Education Code, as amended by Section
6 of Chapter 494 of the Statutes of 2008, is amended to read:
   24214.  (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system, but the member may not make contributions to
the retirement fund or accrue service credit based on compensation
earned from that service. The employer shall maintain accurate
records of the earnings of the retired member and report those
earnings monthly to the system and retired member as described in
Section 22461.
   (b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor within the California public school system may not be less
than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
   (c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, the member's retirement allowance shall be
reduced by the amount of the excess compensation. The amount of the
reduction may be equal to the monthly allowance payable but may not
exceed the amount of the annual allowance payable under this part for
the fiscal year in which the excess compensation was earned.
   (h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
   (i)  This section shall become operative on July 1, 2012.
  SEC. 3.  Section 24214.5 is added to the Education Code, to read:
   24214.5.  (a) Notwithstanding Section 24214, as of July 1, 2010,
the postretirement compensation limitation that shall apply to the
compensation for performance of the activities identified in
subdivision (a) or (b) of Section 22119.5 either as an employee of an
employer, an employee of a third party, or as an independent
contractor shall be zero dollars ($0) during the first six calendar
months after a member retired for service under this part, if the
member is below normal retirement age at the time the compensation is
earned.
   (b) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (a), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, the member's retirement allowance shall be
reduced by the amount of the excess compensation. The amount of the
reduction may be equal to the monthly allowance payable but may not
exceed the amount of the annual allowance payable under this part for
the fiscal year in which the excess compensation was earned.
  SEC. 4.  Section 24216 of the Education Code is amended to read:
   24216.  (a) (1) A member retired for service under this part who
is appointed as a trustee or administrator by the Superintendent
pursuant to Section 41320.1, or who is appointed as a trustee
pursuant to the Immediate Intervention/Underperforming Schools
Program (Article 3 (commencing with Section 52053) of Chapter 6.1 of
Part 28) or the High Priority Schools Grant Program (Article 3.5
(commencing with Section 52055.600) of Chapter 6.1 of Part 28), or a
member retired for service who is assigned by a county superintendent
of schools pursuant to Article 2 (commencing with Section 42122) of
Chapter 6 of Part 24, shall be exempt from subdivisions (d) and (f)
of Section 24214 for a maximum period of 24 consecutive months.
   (2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position and
shall end no more than 24 consecutive months from that date, after
which the limitation specified in subdivisions (d) and (f) of Section
24214 shall apply.
   (3) An exemption under this subdivision shall be granted by the
system providing that the Superintendent or the county superintendent
of schools submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision. The documentation shall be
received by the system no later than June 30 of the school year for
which the exemption is to apply.
   (b) (1) A member retired for service under this part who is
employed by an employer to perform creditable service in an emergency
situation to fill a vacant administrative position requiring highly
specialized skills shall be exempt from the provisions of
subdivisions (d) and (f) of Section 24214 for creditable service
performed up to one-half of the full-time position, if the vacancy
occurred due to circumstances beyond the control of the employer.
   (2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position and
shall end no more than 24 consecutive months from that date, after
which the limitation specified in subdivisions (d) and (f) of Section
24214 shall apply.
   (3) An exemption under this subdivision shall be granted by the
system subject to the following conditions:
   (A) The recruitment process to fill the vacancy on a permanent
basis is expected to extend over several months.
   (B) The employment is reported in a public meeting of the
governing body of the employer.
   (C) The employer submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision. The documentation shall be
received by the system no later than June 30 of the school year for
which the exemption is to apply.
   (4) An exemption under this subdivision shall not be granted to a
member retired for service whose termination of employment with the
employer is the basis for the vacant administrative position.
   (c) This section does not apply to any person who has received
additional service credit pursuant to Section 22715 or 22716.
   (d) A person who has received additional service credit pursuant
to Section 22714 or 22714.5 shall be ineligible for one year from the
effective date of retirement for the exemption provided in this
section for service performed in any school district, community
college district, or county office of education in the state.
   (e) This section shall remain in effect only until June 30, 2012,
and shall be repealed on January 1, 2013, unless a later enacted
statute deletes or extends that date.
  SEC. 5.  Section 24216.5 of the Education Code is amended to read:
   24216.5.  (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:

   (1) The member retired for service with an effective date on or
before January 1, 2009.
   (2) The member retired for service is employed by a school
district to provide any of the following:
   (A) Direct classroom instruction to pupils enrolled in
kindergarten or any of grades 1 to 12, inclusive.
   (B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.

   (C) Support to individuals completing student teaching
assignments.
   (D) Support to individuals participating in the following
programs:
   (i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
   (ii) Alternative certification programs authorized pursuant to
Article 11 (commencing with Section 44380) of Chapter 2 of Part 25.
   (iii) School Paraprofessional Teacher Training Program established
pursuant to Article 12 (commencing with Section 44390) of Chapter 2
of Part 25.
   (E) Instruction and pupil services provided to pupils enrolled in
special education programs authorized pursuant to Part 30 (commencing
with Section 56000) of Division 4 of Title 2.
   (F) Instruction to pupils enrolled in English language learner
programs authorized pursuant to Chapter 3 (commencing with Section
300), Chapter 4 (commencing with Section 400), and Chapter 6
(commencing with Section 430) of Part 1 of Division 1.
   (3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
   (4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. The documentation shall be received by the system
no later than June 30 of the school year for which the exemption is
to apply.
   (b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
   (c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
community college district.
   (d) This section shall remain in effect only until June 30, 2012,
and shall be repealed as of January 1, 2013, unless a later enacted
statute deletes or extends that date.
  SEC. 6.  Section 24216.6 of the Education Code is amended to read:
   24216.6.  (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:

   (1) The member retired for service with an effective date on or
before January 1, 2009.
   (2) The member retired for service is employed by a school
district to provide direct remedial instruction to pupils in grades 2
to 12, inclusive. "Remedial instruction" means the programs
specified in Sections 37252 and 37252.2.
   (3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
   (4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. That documentation shall be on a properly executed
form provided by the system and shall be received by the system no
later than June 30 of the school year for which the exemption is to
apply.
   (b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
   (c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
county office of education or a community college district.
   (d) This section shall remain in effect only until June 30, 2012,
and shall be repealed as of January 1, 2013, unless a later enacted
statute deletes or extends that date.