BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 114|
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                                 THIRD READING


          Bill No:  SB 114
          Author:   Yee (D)
          Amended:  1/17/12
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-3, 3/16/11
          AYES:  Lowenthal, Alquist, Hancock, Liu, Price, Simitian, 
            Vargas
          NOES:  Runner, Blakeslee, Huff
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  6-2, 1/19/12
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson
          NO VOTE RECORDED:  Runner


           SUBJECT  :    Community colleges:  academic salary schedules

           SOURCE  :     Author


           DIGEST :    This bill (1) allows a community college 
          district to calculate the salary of a part-time faculty 
          member, and report that salary on payroll notices and to 
          the State Teachers' Retirement System, as a percentage of 
          salary for a full-time teaching load, and (2) authorizes 
          the provisions of this bill to be subjects of negotiations 
          for new or successor collective bargaining agreements.
           
           ANALYSIS  :    Existing law defines any person who is 
          employed to teach for not more than 67 percent of the hours 
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          per week considered a full-time assignment to be a 
          temporary (part-time) employee.

          Existing law specifies the minimum standard for full-time 
          service in community colleges for purposes of calculating 
          State Teachers' Retirement System (STRS) service credit and 
          specifies 525 instructional hours per school year for all 
          instructors employed on a part-time basis, except 
          instructors employed in adult education programs.  This 
          minimum standard can be increased for part-time faculty who 
          participate in an office hours program, as specified.

          This bill:

          1.Allows a community college district to calculate the 
            salary of a part-time faculty member, and report that 
            salary on payroll notices and to STRS, as a percentage of 
            salary for a full-time teaching load.

          2.Provides that this bill shall not preclude the 
            implementation of any agreement entered into that is in 
            effect before January 1, 2012.  

           Comments

          Part-Time Faculty  .  This bill attempts to deal with a 
          persistent issues for part-time faculty in California 
          community colleges:  difficulties in accruing equitable 
          benefits in the STRS Defined Benefits Program.  As 
          districts have increasingly turned to part-time faculty to 
          provide instruction, this issue has become more significant 
          for both part-time faculty and their employers.

          A 2000 report by the California State Auditor noted that 
          overall, part-time faculty earn lower wages and receive 
          fewer benefits for teaching activities than full-time 
          faculty with similar education and experience.  This report 
          also found that none of the eight districts included in the 
          study enhance the pay rate of part-time faculty who have 
          more education and experience as attractively as they do 
          for their full-time instructors.

          The State Auditor also found that it is more difficult for 
          part-time faculty to obtain the retirement benefits 

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          provided to full-time faculty, in part because it takes 
          longer for them to vest in STRS and because service credit 
          is determined by dividing the amount earned by the member 
          by the full-time compensation earnable.  To vest in the 
          system, a part-time member must accumulate the equivalent 
          of at least five years of full-time service.  If service 
          credit was based on the percentage of a full-time 
          assignment, an instructor working half-time would 
          accumulate one-half year of service credit for each year 
          worked.  However, because a part-time faculty member earns 
          service credit in proportion to the compensation of a 
          full-time faculty member and because a full-time faculty 
          member typically has a higher rate of pay, the actual 
          service credit earned may be much lower.  According to 
          STRS, approximately 63 percent of Defined Benefits Program 
          members who are employed by a community college are 
          employed on a less-than-full-time basis.

           Need for the Bill  .  According to the author's office, STRS 
          can give part-time community college faculty proper and 
          accurate credit for service retirement if community college 
          districts report part-time salaries more consistently.  
          That would include calculating the salary of a part-time 
          faculty member in terms of workload, and reporting that 
          salary as a percentage of full-time salary to STRS.

           STRS Task Force  .  STRS is currently undertaking a 
          comprehensive review of the Designed Benefit Program as it 
          applies to community college faculty and has established a 
          task force to help facilitate a solution.  Over the next 
          few months, this task force will be considering 
          alternatives to address the problems that employers, 
          members, and STRS experience with respect to community 
          college employment on a less-than-full-time basis.  
          Recommendations from this panel could result in new or more 
          equitable methods of accruing retirement benefits from 
          part-time community college faculty.

           Prior Legislation

           The Legislature has considered various measures addressing 
          the use and compensation of part-time faculty in the CCCs:

          ACR 138 (Nava), Resolution Chapter 142, Statutes of 2010, 

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          stated the intent of the Legislature that (1) part-time and 
          temporary community college faculty receive pay and 
          benefits that are equal to those of specified tenured and 
          tenure-track faculty to the extent funding is provided and 
          (2) the CCCs increase the percentage of full-time tenure 
          and tenure-track faculty.  Adopted by the Senate on 8/23/10 
          with a vote of 24-11.

          AB 360 (Ma), 2009-10 Session, would have encouraged STRS to 
          conduct a study that would examine the feasibility and 
          cost-effectiveness of either creating a new program for 
          part-time instructors or making appropriate modifications 
          to the Defined Benefit Program to more appropriately 
          reflect the career of a part-time instructor.  (Held in 
          Assembly Appropriations Committee)

          AB 591 (Dymally), Chapter 84, Statutes of 2008, increased, 
          from 60 to 67 percent, the proportion of hours per week of 
          a full-time instructional assignment that an individual may 
          teach and still be considered a temporary employee.  Passed 
          by the Senate on 6/23/08 with a vote of 35-0.

          AB 1423 (Davis), 2007-08 Session, would have required CCC 
          district academic salary scheduled to be uniform in 
          application and effect.  (Held in Assembly Appropriations 
          Committee)

          SB 955 (Burton), Chapter 25, Statutes of 2003, exempts 
          service in ancillary professional activities, including 
          governance, staff development, grant writing, and advising 
          student organizations, from counting toward the calculation 
          of eligibility for contract or regular status for part-time 
          employees at CCCs unless otherwise provided for in the 
          relevant collective bargaining agreement.  Passed by the 
          Senate on 4/10/03 with a vote of 40-0.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

                          Fiscal Impact (in thousands)

           Major Provisions             2011-12             2012-13         
              2013-14              Fund


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           STRS reporting              Likely minor costs, if 
          community college       Local
                                                 districts choose to 
          participate

           SUPPORT  :   (Verified  1/23/12)

          California Federation of Teachers (source)
          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          California Labor Federation
          California Teachers Association
          Faculty Association of California Community Colleges
          San Francisco Community College Federation of Teachers


           ARGUMENTS IN SUPPORT  :    Although part-time faculty must 
          meet the same minimum qualifications as full-time faculty 
          and perform the same teaching activities, the sponsor of 
          this bill, the California Federation of Teachers, argue 
          that many districts do not give part-time faculty salary 
          placement credit for education or experience beyond the 
          minimum qualifications, making it difficult for part-time 
          faculty to understand how to achieve salary enhancements.  
          Further, the sponsor indicates that pay rates based on 
          classroom hours may not adequately account for teaching 
          activities such as preparing for class or grading papers, 
          resulting in inequalities in salary and service credit 
          reported to STRS.  This lack of clarify creates 
          complexities in determining the STRS credit a member has 
          earned and can make it more difficult for part-time faculty 
          to obtain retirement benefits.


          CM:cpm  1/24/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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