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 --