BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1509
                                                                  Page  1

          AB 1509 (Machado)
          As Amended  June 22, 2000
          Majority vote
          |ASSEMBLY:  |     |(June 22, 2000) |SENATE: |34-1 |(June 22,      |
          |           |     |                |        |     |2000)          |
                    (vote not relevant)
           Original Committee Reference:   BUDGET

          summary  :  Creates the Defined Benefit Supplement Program (DBSP)  
          for all State Teachers' Retirement System (STRS) members, that  
          diverts 25% of STRS contributions, or 2% of payroll, into a tax  
          deferred account that will be available to the teacher upon  
          retirement in a lump sum payment or as an annuity.  

          as passed by the assembly  , this bill was a spot trailer bill for  
          the purpose of enacting provisions of the Budget Act.
          fiscal effect  :  No General Fund effect and no effect to the  
          solvency of STRS; the STRS surplus will absorb the cost of DBSP.
          comments  :  The interest rates for DBSP will be set by the STRS  
          board prior to the beginning of each plan year.  This bill  
          provides a 10 year sunset date.

          Analysis prepared by:   Chris Woods/ BUDGET / (916) 319-2099

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