BILL NUMBER: AB 3076	CHAPTERED
	BILL TEXT

	CHAPTER  474
	FILED WITH SECRETARY OF STATE  SEPTEMBER 10, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 10, 2004
	PASSED THE ASSEMBLY  AUGUST 24, 2004
	PASSED THE SENATE  AUGUST 18, 2004
	AMENDED IN SENATE  AUGUST 4, 2004
	AMENDED IN SENATE  JUNE 29, 2004
	AMENDED IN SENATE  JUNE 1, 2004
	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Mullin

                        MARCH 11, 2004

   An act to amend Sections 22502, 22504, 22601.5, 22604, 26400, and
26401 of the Education Code, relating to state teachers' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3076, Mullin.  State Teachers' Retirement Law:  part-time
community college faculty.
   Existing law requires any person who performs creditable service,
as defined, on a part-time basis to become a member of the Defined
Benefit Program of the State Teachers' Retirement Plan if the person
is not already a member and is employed to perform 50% or more of the
full-time equivalent for the position.  Existing law provides that
persons who teach adult or community college classes for not more
than 60% of the full-time assignment are classified as temporary
employees.
   This bill would, as of July 1, 2005, exclude community college
faculty members from mandatory membership in the Defined Benefit
Program so long as they are classified as temporary employees.  The
bill would make related technical and conforming changes with respect
to the Cash Balance Benefit Program.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22502 of the Education Code is amended to read:

   22502.  (a) Any person employed by a school district or county
office of education to perform creditable service on a part-time
basis, who is not already a member of the Defined Benefit Program,
shall become a member as of the first day of the pay period following
his or her employment to perform creditable service for 50 percent
or more of the full-time position, unless excluded from membership
pursuant to Section 22601.
   (b) Any person employed by a community college district to perform
creditable service on a part-time basis, who is not already a member
of the Defined Benefit Program, shall become a member as of the
first day of the pay period following his or her employment to
perform creditable service that is not subject to Section 87474,
87480, 87481, 87482, or 87482.5, unless excluded from membership
pursuant to Section 22601.
   (c) This section shall apply to persons who perform service
subject to coverage under this part and to persons who are employed
by employers who provide benefits for their employees under Part 14
(commencing with Section 26000).
  SEC. 2.  Section 22504 of the Education Code is amended to read:
   22504.  (a) Any person employed by a school district or county
office of education to perform creditable service on a part-time
basis, who is not already a member of the Defined Benefit Program,
shall become a member as of the first day of the pay period following
the pay period in which the person performed at least 60 hours of
creditable service, if employed on an hourly basis, or 10 days of
creditable service, if employed on a daily basis, during the school
year, in one school district or county office of education, unless
excluded from membership pursuant to Section 22601.
   (b) Any person employed by a community college district to perform
creditable service on a part-time basis, who is not already a member
of the Defined Benefit Program, shall become a member as of the
first day of the pay period following his or her employment to
perform creditable service that is not subject to Section 87474,
87480, 87481, 87482, or 87482.5, unless excluded from membership
pursuant to Section 22601.
   (c) Subdivision (a) does not apply to persons who perform service
subject to coverage under this part and who are employed by employers
who provide benefits for their employees under Part 14 (commencing
with Section 26000).
   (d) Subdivision (b) shall apply to persons who perform service
subject to coverage under this part and to persons who are employed
by employers who provide benefits for their employees under Part 14
(commencing with Section 26000).
  SEC. 3.  Section 22601.5 of the Education Code is amended to read:

   22601.5.  (a) Any person employed by a school district or county
office of education to perform creditable service who is not already
a member in the Defined Benefit Program and whose basis of employment
is less than 50 percent of the time an employer requires for the
full-time position is excluded from mandatory membership in the
Defined Benefit Program.
   (b) Any person employed by a community college district to perform
creditable service pursuant to Section 87474, 87480, 87481, 87482,
or 87482.5 who is not already a member of the Defined Benefit Program
is excluded from mandatory membership in the Defined Benefit
Program.
   (c) This section shall apply to persons who perform service
subject to coverage under this part and to persons who are employed
by employers who provide benefits for their employees under Part 14
(commencing with Section 26000).
  SEC. 4.  Section 22604 of the Education Code is amended to read:
   22604.  (a) Any person employed to perform creditable service on a
part-time basis, who is not already a member of the Defined Benefit
Program and who performs less than 60 hours of creditable service in
a pay period if employed on an hourly basis, or less than 10 days of
creditable service in a pay period if employed on a daily basis,
during the school year in one school district or county office of
education, is excluded from mandatory membership in the Defined
Benefit Program.
   (b) Any person employed by a community college district to perform
creditable service pursuant to Section 87474, 87480, 87481, 87482,
or 87482.5, who is not already a member of the Defined Benefit
Program, is excluded from mandatory membership in the Defined Benefit
Program.
   (c) Subdivision (a) does not apply to persons who perform service
subject to coverage under this part and who are employed by employers
who provide benefits for their employees under Part 14 (commencing
with Section 26000).
   (d) Subdivision (b) shall apply to persons who perform service
subject to coverage under this part and to persons who are employed
by employers who provide benefits for their employees under Part 14
(commencing with Section 26000).
  SEC. 5.  Section 26400 of the Education Code is amended to read:
   26400.  (a) A person employed on a part-time basis by a school
district or county office of education to perform creditable service
for less than 50 percent of each full-time position shall become a
participant on the later of the first day on which creditable service
is performed for an employer that provides the Cash Balance Benefit
Program or the effective date of the employer's governing board's
action to provide the Cash Balance Benefit Program, provided that
creditable service is not performed for the same employer with whom
the person is subject to mandatory membership in the Defined Benefit
Program.
   (b) A person employed on a temporary basis by a community college
district, who is not subject to mandatory membership in the Defined
Benefit Program pursuant to Section 22502 or 22504 for each position
with the same employer, shall become a participant on the later of
the first day on which creditable service is performed for an
employer that provides the Cash Balance Benefit Program or the
effective date of the employer's governing board's action to provide
the Cash Balance Benefit Program.
   (c) If the employer's governing board's action to provide the Cash
Balance Benefit Program gives employees the right to elect coverage
under social security or an alternative retirement plan offered by
the employer in addition to the Cash Balance Benefit Program, the
employee may elect within 60 calendar days of the latest of the first
day on which creditable service is performed, the date of the
employer's governing board's action to provide the Cash Balance
Benefit Program, or the effective date of the employer's governing
board's action to provide the Cash Balance Benefit Program to be
covered by social security or to participate in the alternative
retirement plan in lieu of participating in the Cash Balance Benefit
Program.  Any election may not preclude an employee from
participating in the Cash Balance Benefit Program at a later date so
long as the Cash Balance Benefit Program is provided by the employer
and the employee is eligible to participate in the Cash Balance
Benefit Program.
   (d) If subdivision (c) is applicable, the employer shall inform
employees pursuant to subdivision (c) of Section 26300 of their right
to make an election and the election shall be made on a form
prescribed by the system and filed with the employer.  The election
shall become effective on the later of the first day on which
creditable service is performed or the effective date of the employer'
s governing board's action to provide the Cash Balance Benefit
Program.
   (e) If the participant's basis of employment with a school
district or county office of education that provides the Cash Balance
Benefit Program changes to employment to perform creditable service
for 50 percent or more of the full-time position during one school
year with the same employer, creditable service performed for that
employer shall no longer be covered under the Cash Balance Benefit
Program.  Creditable service performed for that employer shall be
subject to coverage by the Defined Benefit Program as of the first
day of the pay period following the change in the participant's basis
of employment.
   (f) If the participant's basis of employment with a community
college district changes to employment that is subject to mandatory
membership in the Defined Benefit Program pursuant to Section 22501,
22502, or 22504 during one school year with the same employer,
creditable service performed for that employer shall no longer be
covered under the Cash Balance Benefit Program.  Creditable service
performed for that employer shall be subject to coverage by the
Defined Benefit Program as of the first day of the pay period
following the change in the participant's basis of employment.
  SEC. 6.  Section 26401 of the Education Code is amended to read:
   26401.  (a) A member of the Defined Benefit Program who is
employed to perform creditable service on a part-time basis for less
than 50 percent of each full-time position by a school district or
county office of education that provides the Cash Balance Benefit
Program may elect to become a participant for creditable service
subject to coverage under the Cash Balance Benefit Program for that
employer, provided that the creditable service is not performed for
the same employer with whom the member is also subject to mandatory
membership in the Defined Benefit Program.
   (b) A member of the Defined Benefit Program who is employed
pursuant to Section 87474, 87480, 87481, 87482, or 87482.5 by a
community college district that provides the Cash Balance Benefit
Program may elect to become a participant for creditable service
subject to coverage under the Cash Balance Benefit Program for that
employer, provided that the creditable service is not performed for
the same employer with whom the member is also subject to mandatory
membership in the Defined Benefit Program.
   (c) The election shall be made on a form prescribed by the system
and shall be filed with the employer within 60 calendar days of the
later of the first day of employment with an employer that provides
the Cash Balance Benefit Program, the date of the employer's
governing board's action to provide the Cash Balance Benefit Program,
or the effective date of the employer's governing board's action to
provide the Cash Balance Benefit Program.
   (d) Employers shall make available to employees specified in
subdivisions (a) and (b) information and forms provided by the system
for making an election regarding participation, and shall maintain
the written election by the employee in employer files.  The election
shall become effective on the first day of the pay period following
the pay period in which the election is made.
   (e) If an election is made pursuant to subdivision (a) and the
participant's basis of employment with that employer changes to
employment to perform creditable service for 50 percent or more of
the full-time position during one school year with the same employer,
creditable service performed for that employer shall no longer be
covered under the Cash Balance Benefit Program.  Creditable service
performed for that employer shall be subject to coverage under the
Defined Benefit Program as of the first day of the pay period
following the change in the participant's basis of employment.
   (f) If an election is made pursuant to subdivision (b) and the
participant's basis of employment with the community college district
changes to employment that is subject to mandatory membership in the
Defined Benefit Program pursuant to Section 22501, 22502, or 22504
during one school year with the same employer, creditable service
performed for that employer shall no longer be covered under the Cash
Balance Benefit Program.  Creditable service performed for that
employer shall be subject to coverage under the Defined Benefit
Program as of the first day of the pay period following the change in
the participant's basis of employment.
  SEC. 7.  This act shall be operative on July 1, 2005.