BILL NUMBER: AB 232	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Members Hill and Fletcher
   (Coauthor: Assembly Member Tran)
   (Coauthor: Senator DeSaulnier)

                        FEBRUARY 5, 2009

   An act to amend Section 24604 of, and to add Section 
22336   22011  to, the Education Code, relating to
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 232, as amended, Hill. Teachers' retirement.
   The Teachers' Retirement Law establishes certain retirement
benefits and procedures for the administration of those benefits to
retired public schoolteachers and other persons formerly employed in
connection with the schools, as specified. Existing law 
authorizes the retired member, disabled member, or beneficiary to
specify that monthly benefit payments be disbursed by direct deposit,
direct mail to a financial or other institution, or by mailing to a
payment address provided by the retired member, disabled member, or
beneficiary. Existing law requires the Teachers' Retirement Board to
send a copy of the benefit payment information to any retired member,
disabled member, or beneficiary who has payments transmitted by
direct deposit or by mail to a financial institution unless the board
has received a written request from that person not to send a copy
of the information.   requires that certain documents
relating to benefits under that retirement system be signed, as
specified.  
   This bill would require that, for an application or document
requiring a signature, that signature be in a form prescribed by the
retirement system, including on paper or made by electronic means.
 
   Existing law authorizes a retired member, disabled member, or
beneficiary to specify that monthly benefit payments be disbursed by
direct deposit, direct mail to a financial or other institution, or
by mailing to a payment address provided by the retired member,
disabled member, or beneficiary. Existing law requires a member or
beneficiary to whom a lump-sum payment or benefit is to be disbursed
to specify the mailing address for the payment.  
   This bill would apply the above provisions relating to the method
of receiving benefit payments and the mailing address for lump-sum
payments to a member, nonmember spouse, or beneficiary. The bill
would provide that a member, nonmember spouse, or beneficiary to whom
a lump-sum payment or benefit is to be disbursed, and who is
receiving payment for an ongoing benefit by electronic funds
transfer, may have the lump-sum payment disbursed by electronic funds
transfer to the financial institution on file for payment of the
ongoing benefit. The bill would require the retirement system to make
available an electronic copy of the benefit payment information to
any member, nonmember spouse, or beneficiary who receives a monthly
benefit payment. The bill would also require the retirement system to
send a copy of the benefit payment information to any member,
nonmember spouse, or beneficiary when there is an adjustment in the
allowance, or a change in any amount deducted from the allowance.
 
   Existing law requires the Teachers' Retirement Board to send a
copy of the benefit payment information to any retired member,
disabled member, or beneficiary who has payments transmitted by
direct deposit or by mail to a financial institution, unless the
board has received a written request from that person not to send a
copy of the information. 
   This bill would delete the provision that requires the Teachers'
Retirement Board to send a copy of the benefit payment information to
any retired member, disabled member, or beneficiary who has payments
transmitted by direct deposit or by mail to a financial institution.
 The bill would also authorize the board to implement
technology improvements in the delivery of benefits and services to
members, participants, and beneficiaries, subject to terms and
conditions established by the board, if the board finds that the
means by which those services are delivered provide a level of
information security at least equal to the processes specified in
law. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to promote the use
of improvements in technology to provide services in the most
cost-effective and efficient manner and also to use those
improvements to engage in environmentally sound practices, such as
reducing the amount of paper documents that are mailed and received.

  SEC. 2.    Section 22336 is added to the Education
Code, to read:
   22336.  Notwithstanding any other provision of law, the board is
authorized to implement technology improvements in the delivery of
benefits and services to members, participants, and beneficiaries,
subject to terms and conditions established by the board, if the
board finds that the means by which those services are delivered
provide a level of information security at least equal to the
processes specified in law. 
   SEC. 2.    Section 22011 is added to the  
Education Code   , to read:  
   22011.  For an application or document requiring a signature, that
signature shall be in a form prescribed by the system, including,
but not limited to, on paper or made by electronic means.
Notwithstanding any other law, an application or document made under
this part that is signed and submitted by the person authorized to do
so using technology and security measures prescribed by the system
shall be deemed to be a signed and valid original document. 
  SEC. 3.  Section 24604 of the Education Code is amended to read:
   24604.  (a) A  retired member, disabled member 
 member, nonmember spouse  , or beneficiary under this part
shall specify whether monthly benefit payments are to be disbursed
by: (1) direct deposit (electronic funds transfer); (2) direct mail
to a financial or other institution; or (3) mailing to a payment
address provided by the  retired member, disabled member
  member, nonmember spouse  , or beneficiary. 
   (b) A member, nonmember spouse, or beneficiary under this part to
whom a lump-sum payment or benefit is to be disbursed, and who is
receiving payment for an ongoing benefit by electronic funds
transfer, may have the lump-sum payment disbursed by electronic funds
transfer to the financial institution on file for payment of the
ongoing benefit.  
   (b) A member or beneficiary under this part to whom a 
    (c)     A member, nonmember spouse, or
beneficiary under this part who is not receiving payment for an
ongoing benefit by electronic funds transfer and to whom a 
lump-sum payment or benefit is to be disbursed shall specify the
address to which the payment shall be mailed. 
   (d) (1) The system shall make available an electronic copy of the
benefit payment information to any member, nonmember spouse, or
beneficiary under this part who receives a monthly benefit payment.
 
   (2) The system shall send a copy of the benefit payment
information to any member, nonmember spouse, or beneficiary under
this part when there is an adjustment in the allowance, or a change
in any amount deducted from the allowance.  
   (c) A payment disbursed as specified by the member or 
    (e)     A payment disbursed as specified by
the member, nonmember spouse, or  beneficiary under this part
shall fully discharge the board, system, and plan from any claim
resulting from actions taken under this section.