BILL ANALYSIS Ó SB 114 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 114 (Yee) - As Amended: June 20, 2012 Policy Committee: PERSS Vote:6-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires community college districts (CCDs) to electronically submit collective bargaining or employment agreements for community college and adult education instructors to the California State Teachers' Retirement System (CalSTRS). The bill also requires these agreements to reflect the full time equivalent for each class of affected employees and be submitted annually beginning July 1, 2013. FISCAL EFFECT Minor and absorbable costs for CalSTRS. COMMENTS 1)Support. CalSTRS supports SB 114 because it will provide additional information to ensure community colleges are reporting accurate service credit for part-time and adult education instructors. CalSTRS states SB 114 will allow them to check the information against the data submitted by employers to CalSTRS. CalSTRS is working with the Chancellor's Office to reach an agreement whereby CalSTRS may utilize the data they receive from community college employers as a means to verify the FTEs reported to CalSTRS. According to CalSTRS, this information, in conjunction with the collective bargaining or employment agreements will provide CalSTRS with a better understanding of how to help employers report accurate FTEs so that they do not simply report the statutory minimum of 525, as is the current practice for some community colleges. Also, the additional information may help to ensure that part-time instructors are accruing the correct amount of service credit. SB 114 Page 2 2)Background . Existing law allows CCDs to bargain the rates of pay for faculty members. Full-time and part-time faculty members are typically compensated at different rates. CCDs are responsible for reporting certain faculty payroll information to STRS. CCD educators employed on a part-time basis may elect to be covered by the CalSTRS Defined Benefit (DB) Program. Although the DB Program works well for full-time employees, CalSTRS reports a number of issues have arisen over the years about its application to part-time and adult education community college staff. The most significant issue has been the difficulty in reporting compensation in order to establish the appropriate levels of service credit. 3)There is no registered opposition to this bill. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081