BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2155 (Ridley-Thomas) - Teachers:  retirement:  full time
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: March 28, 2016         |Policy Vote: P.E. & R. 3 - 0    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
          |                                |                                |
           ----------------------------------------------------------------- 
          
          This bill meets the criteria for referral to the Suspense File.


          


          Bill  
          Summary: AB 2155 would require that collective bargaining  
          agreements or employment agreements that apply to adult  
          education instructors specify the courses for which those  
          members are adult education instructors.


          Fiscal  
          Impact: This bill would result in annual state costs,  
          potentially in excess of $150,000 annually, related to (1)  
          increased state pension costs, and (2) a potential increase in  
          labor costs within the state's community college system. 

          Background: Districts and their faculty employees generally  
          bargain to define full-time employment and identify a specified  
          number of days or hours required to work full-time per school  
          year. However, for purposes of earning creditable service for  
          CalSTRS retirement benefits, there are minimum hours that  







          AB 2155 (Ridley-Thomas)                                Page 1 of  
          ?
          
          
          employees must work to earn a year of creditable service. These  
          minimum standards vary depending on (1) whether the employee  
          teaches full-time or part-time, and (2) which courses the  
          employee teaches.  Community college employers and employees  
          refer to credit and noncredit courses.  However, provisions  
          governing CalSTRS do not make these two references, instead  
          referring to instruction in courses (i.e., credit) or in adult  
          education courses (i.e., noncredit).  
          Current law establishes three levels of funding for community  
          colleges.  Credit courses are funded at the highest level and  
          noncredit (adult education) courses were funded at the lowest  
          level. In between sits a third level for Career Development and  
          College Preparation (CDCP) courses, which are also considered  
          noncredit courses.  CDCP courses, however, are different from  
          traditional noncredit courses in that they are a series of  
          courses that lead to a certificate of completion that is  
          designed to improve employment prospects and increase transfer  
          opportunities to four-year institutions.


          The 2015-16 state budget created funding parity between CDCP  
          courses and courses offered for credit. Offering CDCP courses in  
          the noncredit format possesses certain advantages; however, a  
          barrier to doing so is the requirement that faculty teaching  
          noncredit courses are required to provide at least 25  
          instructional hours per week while faculty teaching courses for  
          credit are required to provide 15 instructional hours per week.   



          Under this bill, a community college district and its employees  
          would have to bargain to decide which courses should be  
          specified as adult education courses and thus, the minimum  
          instructional hours a full-time instructor would have to work to  
          earn creditable service-either 525 instructional hours (15 hours  
          per week for 35 weeks) or 875 instructional hours (25 hours per  
          week for 35 weeks).


          Proposed Law: This bill would do the following:


                 Require collective bargaining agreements or employment  
               agreements applying to any part-time instructors and to  








          AB 2155 (Ridley-Thomas)                                Page 2 of  
          ?
          
          
               adult education instructors to do all of the following:


               o      Specify the number of hours of creditable service  
                 that equal full time for part-time and adult education  
                 instructors.


               o      For an agreement entered into, extended, renewed, or  
                 amended on or after January 1, 2017, specify the courses  
                 for which an instructor is subject to the 875  
                 instructional hour minimum standard for adult education  
                 courses, if applicable.  Thus, creditable service for  
                 instructors of courses not specified in the agreement  
                 would be based on the 175 day or 1050 hour minimum  
                 standard for full time and the 525 instruction hour  
                 minimum standard for part time (i.e., if the agreement  
                 specifies the course is adult education, the instructor  
                 will have to perform a minimum of 25 instructional  
                 hours/week but if the agreement does not specify the  
                 course is adult education, the instructor will have to  
                 perform a minimum of 15 instructional hours/week).


               o      Make specific reference to the section Education  
                 Code Section 22138.5, defining the minimum standard for  
                 full time for creditable service.




          



          Staff  
          Comments: This bill would link the instructional hour  
          requirement of CDCP non-credit courses to standard "for credit"  
          courses. This action would lower the requirement for instructors  
          teaching specific non-credit courses on a part-time basis from  
          875 hours to 525 hours. Thus, the bill would make modifications  
          to the number of instructional hours required to earn  
          pensionable service credit for certain adult education courses;  
          consequently, it could potentially enhance teacher pension  








          AB 2155 (Ridley-Thomas)                                Page 3 of  
          ?
          
          
          benefits. 
          Additionally, the bill could impact hiring with respect to  
          full-time faculty teaching noncredit courses. If current  
          full-time faculty teaching 25 hours per week respond to the bill  
          by teaching 15 hours per week (in other words, respond to the  
          bill by worker fewer hours such that they still receive a full  
          year of pension credit), a community college would incur costs  
          to hire additional instructors to backfill for 10 hours of each  
          position. The total cost of this impact is unknown, but could be  
          significant.




                                      -- END --